A subcommittee for the Co-operative Group has met to push through an agreeable set of reforms for the mutual after Lord Myners’ recommendations were met with tough opposition from members.
The Co-op chairwoman Ursula Lidbetter and at least two other board members, Michael Harriet and Herbert Daybell, are to push through Myner’s planned reforms. But sources say the reforms will not go as far as Lord Myners’ proposals.
The Co-op board is expected to outline the new proposals towards the end of the month.
If the new measures are agreed, Lidbetter will work with the subcommittee to implement them that is acceptable to the Co-op’s regional boards.
Lord Myners resigned last week after his plans, which were yet to be completed, triggered a fierce backlash from its regional members. Myners had proposed changing the structure of the board so that it operated in a similar fashion to a public company.
A source close to the Co-op board said Myners was seen to be damaging the group due to his attacks through the media. Last month he criticised the Co-op board for “recklessness”, according to the Financial Times.
The Co-op has been under growing pressure to take action after 1,200 of its employees, represented by Unite union, called for the regional board members to support Myners’ proposals.
Co-op members will be asked to vote on the new governance principles at a crucial shareholder meeting on May 17.
The Co-op is set to reveal its full-year results on Thursday and it is expected to record a £2bn to £2.5bn loss.