The former CEO of Co-op took home a total of £1.9m in 2025, despite the group falling to a loss of £35m amidst a cyber attack and the ever-present cost-of-living crisis.
Shirine Khoury-Haq’s payout included a £165,000 bonus as part of the company’s ‘Rewarding Growth’ scheme, and the company’s annual report added that she could be in line for a separate £682,000 performance bonus next May if conditions are met.
In the report, Co-op Group’s remuneration committee said it had decided to pay out 10% of a three-year potential total as part of the new incentive plan.
The payout came after Co-op reported an underlying operating loss of £35m for 2025, alongside Khoury-Haq announcing her intention to step down amid reports of a “toxic work culture” at the top of the Manchester-based retail giant.
Khoury-Haq left her position on 29 March 2026, with former First Milk chief Kate Allum appointed as interim group CEO from 30 March. Khoury has denied that her departure after four years in charge, and seven years in total, at the brand were due to the toxicity claims: “My decision to leave was very much a personal decision,” she said. “The reason is I want to go and do something else.”
The leadership transition follows a period where the group navigated a significant criminal cyberattack, which resulted in an estimated £107m impact on profitability and contributed to the underlying operating loss of £35m.
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The group’s unaudited results also saw a 2.3% decline in total revenue to £11.025bn, reflecting both the digital disruption and a contracting convenience market.
In the report, Co-op said: “The challenges of 2025 mean that on formulaic assessment, the targets to trigger payment under this scheme for the year were not met. However, the committee is keen to recognise the tremendous hard work and effort of all colleagues in an extremely challenging and difficult year.
“The way our colleagues responded with resilience and professionalism to an unprecedented malicious cyber attack was truly remarkable. As this is our Co-op’s first all-colleague incentive scheme, we are keen that colleagues are engaged by this scheme and continue to be motivated and focused on recovery and the growth of our Co-op over the next two years.”
It added: “The committee has therefore decided to exercise discretion, and all qualifying colleagues will receive 10% of their maximum opportunity under the Rewarding Growth incentive plan to recognise all their efforts during 2025. In addition to launching the Rewarding Growth incentive plan in 2025, our executive directors and senior leaders were eligible to join the 2025-27 long-term incentive plan. Any decision around the outturn of this plan will not be made until the end of 2027.”
The Rewarding Growth Incentive Plan is a three year “all-colleague” scheme, with around 53,000 eligible colleagues across Co-op receiving a payout this year. Shopfloor staff are ex[ected to receive around £100 each under the scheme.
