The former Co-operative boss Euan Sutherland is to receive a £1m payoff after quitting as chief executive after only 10 months.

Sutherland’s remuneration package has caused anger among members of the Co-operative at a time when the company is making 6,000 redundancies, according to The Observer.

The payoff is equivalent to 12 months’ of Sutherland’s basic salary and the Co-op has defended the package by claiming it is a routine payment.

Tesco boss Philip Clarke, who stepped down this morning, will also receive 12 months’ basic salary in lieu of notice.

The Co-op claims that when Sutherland resigned it did not feel it was appropriate for him to work his notice period and instead decided to put him on gardening leave.

Sutherland left the business in March after details of his £3.6m salary were leaked and vented his frustration on Facebook by claiming individuals were attempting to personally undermine him.

Critics argue Sutherland should not be entitled to a year’s salary because he chose to quit and former Co-operative party general secretary and chief executive of Mutuo Peter Hunt told The Observer the payoff was a “management stitch-up”.