Co-op exec walks away with £1.9m as retailer reels from cyberattack

Just weeks after facing scrutiny over workplace culture, Shirine Khoury-Haq, the former CEO of the Co-op Group, departs with a £1.9 million compensation package. The timing is particularly jarring given the retailer’s recent struggles, including a significant cyberattack and a £125 million underlying loss in 2025—a stark contrast to the £2.2 million she earned the previous year.

A generous exit amidst financial headwinds

The remuneration details, outlined in the Co-op’s annual report, reveal a complex structure. While Khoury-Haq and other executives forfeited their standard annual bonus due to the company’s failure to meet affordability targets, a “rewarding growth” incentive plan—approved by the board despite falling sales—resulted in a payout of £165,000. This plan, designed to benefit all staff, saw frontline workers receive a modest £100 each, a gesture the Co-op defends as recognizing extraordinary effort during a turbulent period.

But the optics are undeniably troubling. The board’s decision to award a significant sum to the outgoing CEO while the Co-op navigates the fallout from a major cyber breach and declining sales raises serious questions about corporate responsibility. The group also cited “layered cost headwinds” totaling £150 million, encompassing national insurance increases, pay rises, and packaging taxes, further compounding the financial strain.

Culture concerns and a ‘personal decision’

Khoury-Haq’s departure follows reports of a “toxic” environment within the group’s leadership, allegations she vehemently denied, characterizing her exit as a “personal decision.” However, the timing—occurring a month after these concerns surfaced—is difficult to ignore. The Co-op attempted to downplay the criticisms, stating that they didn't “represent the views of our broader leadership and colleagues,” a statement that now rings hollow in light of the financial performance and leadership upheaval.

The lingering question is this: how much did the alleged cultural issues and the subsequent fallout contribute to the retailer’s struggles and ultimately, Khoury-Haq's departure? Kate Allum, formerly of First Milk, has stepped in as interim CEO while a permanent replacement is sought, tasked with navigating the Co-op through a period of significant challenges and restoring confidence among both employees and consumers. Whether she can untangle the web of financial woes and cultural concerns remains to be seen, but the early signs suggest a difficult road ahead.