Former Co-op boss was paid almost £2m before leaving after group’s difficult year | Co-operative Group

The former boss of the co-op raised almost £2m before his sudden departure last month, despite a difficult year when the retailer was left stranded by a damaging cyber attack.

Shirine Khoury-Haq’s total annual salary package was worth £1.9 million in 2025; including a £165,000 “rewarding growth” bonus approved by the joint board despite falling sales and an underlying loss of £125 million.

Khoury-Haq and other executives did not receive their regular annual bonuses because the board said the company did not meet “affordability support” to make the payment. However, Khoury-Haq’s total salary also included a long-term performance bonus linked to previous years.

In the Co-op Group’s annual report, the remuneration committee revealed it had decided to pay 10% of the potential total over three years for its new “rewarding growth” incentive scheme for all staff.

The report said: “The challenges of 2025 mean that, in boilerplate assessment, payment trigger targets for that year under this program have not been met. However, the committee is keen to recognize the tremendous hard work and effort of all our colleagues in what has been an extremely challenging and challenging year.”

“The way our colleagues responded with resilience and professionalism to an unprecedented malicious cyberattack was truly remarkable.”

This meant full-time frontline workers, such as shop floor staff, employed for the whole of 2025 would receive £100 under the scheme.

The report did not say whether Khoury-Haq would receive any compensation for loss of office at the time of his departure, but made clear that he would not receive more than the “rewarding growth” plan.

He said he would receive a separate performance bonus of £682,000 next May if conditions were met, and did not say whether his departure would prevent the payment. Overall, the £1.9 million wage package drops to £2.2 million in 2024.

Kate Allum, a board member and former boss of dairy group First Milk, will take over as interim chief executive while a permanent replacement is sought.

Khoury-Haq’s departure, after four years at the company and almost seven years as its chairman, comes a month after concerns were reported about the culture at the top of the group.

Last week, Khoury-Haq denied his resignation was linked to allegations of toxic culture. “My decision to leave was very much a personal decision,” he said. “That’s because I don’t want to go do something else.”

In February the Co-op defended its bosses’ behavior following reports that senior managers complained of a toxic environment. The grocery and service chain said it did not believe the criticisms “represent the views of our overall leadership and colleagues.”

The co-operative said it had “lost trading momentum” as it focused on recovering from the cyber attack and was also hit by a “tightening convenience market” as household budgets came under pressure.

The group said employers faced “layered cost fluctuations” of around £150 million in the year due to increases in national insurance, wages and packaging duties.

A spokesman for the Co-op said: “The rewarding growth incentive scheme is a three-year program for all colleagues, with 53,000 eligible colleagues across the Co-op receiving payments this year. “The board used its discretion to recognize the outstanding efforts of colleagues throughout a very challenging year, including their response to the cyber incident.

“10% is the maximum expected result for this year and reflects both this contribution and our commitment to ensuring our colleagues are involved in the recovery and future success of our Co-operative.”