Myners’ strike: reforming peer quits Co-op board
Former City minister Lord Myners, who has been driving reform of the embattled Co-operative Group, quits the company’s board.
Co-operative Group has declined to comment on the report that Lord Myners, who was brought in four months ago to reform the business, had quit.
However, it is understood that Lord Myners has quit as an independent director – though he will continue with his review to the company.
It is a review that was prompted by a disastrous 2013 for Co-operative Group. Lord Myners was brought in to the company in Dercember to find a remedy for the business after a £1.5bn hole was discovered in its banking arm’s finances.
The company’s governance was also thrust into the spotlight after a newspaper’s drugs sting on former Co-op chairman Paul Flowers. The company was later criticised over the appointment of Mr Flowers over concerns about his lack of experience.
Last month Euan Sutherland, the Co-op’s chief executive, stepped down.
‘Democratic’
Lord Myners’ resignation comes after the Co-operative Group’s largest independent society voted against Myners’ reforms – something that has been criticised as a “meaningless” political statement.
The Guardian said that Lord Myners’ review is unlikely to be accepted by the regional boards and independent societies which run the organisation.
The board of the Midcounties Co-operative, which operates gas and electricity supplier Co-operative Energy as well as Co-op-branded food stores and other businesses, voted against the reform on Monday.
My role is akin to that of a doctor – to examine, diagnose and prescribe. It is up to the patient to decide whether to take the medicine. Lord Myners
A spokesman said: “The Midcounties Co-operative supports the view that reform is needed and is committed to working towards that.
“The Co-operative Group is a democratic organisation and we want to ensure that the views of our members and colleagues are fully represented during these very important discussions surrounding the future of the group.”
But Lord Myners said: “The Myners Review will not be complete until the end of this month. In the meantime, we are meeting with the regional boards to explain the underlying thinking that will be detailed in our report.
“It would seem premature to vote until the report is complete. The review is independent. My role is akin to that of a doctor – to examine, diagnose and prescribe. It is up to the patient to decide whether to take the medicine.”
Lord Myners has previously said the group must take urgent steps to reform a “massive failure” of governance or it will go bust.
In an interim review published last month, he criticised the lack of experience on its board and said he was “deeply troubled by the disdain and lack of respect for the executive team” among some members.
He acknowledged “acute concern” among Co-op board members and those in the regions over how reform could be achieved while preserving democracy, but said he was “confident that the two are fully compatible”.