Co-op pays a bonus to the boss after a 500% surge in profits, but holds £ 66 million in taxpayer Covid bailout cash
Co-op CEO Steve Murrells and other company bosses will enjoy the bonus this year
Co-operatives pay bonuses to top bosses, despite holding £ 66m in taxpayer cash, as profits multiply five-fold.
Steve Murrells, CEO of the supermarket chain, has confirmed that payments to him and other executives will be announced in an annual report in the coming weeks. This is despite the group’s announcement that it will repay only one-fifth of the government support it received in the pandemic. Sales in 2020 increased 5.5% to £ 11.5 billion.
This increased profits from £ 24m to £ 127m, securing Co-op’s position as a pandemic winner among its grocery rivals. It received a £ 66m reduction in business rates and a £ 15.5m severance payment, but yesterday only agreed to repay the cash received under the severance system.
Murrells said: You need to monitor how you are using the missing resources. “
He defended the bonus, saying that the board made a decision and that he was only one of the 8,000 managers who would benefit from the scheme.
This decision can offend each other’s members and many of their 63,000 staff. They may believe that the tax withholding move undermines its ethical stance and promises to “do the right thing.”
Over £ 3 billion of total business rate holiday costs from April 2020 to March 2021 have been paid to “essential retailers” who remained open during the pandemic.
More than 12 major chains, including the four largest supermarkets, have promised to repay £ 2.16 billion, significantly reducing profits.
However, Co-op said it would have to “rebuild its balance sheet” and pay £ 84m for Covid-related costs.
Robert Hayton, President of the UK Property Taxes at Altus Group, said:
The co-op pays a bonus after a surge in profits, but holds £ 66m of Covid cash
Source link The co-op pays a bonus after a surge in profits, but holds £ 66m of Covid cash