The Co-operative is to hand a £3.6 million pay deal to its chief executive, according to reports - despite facing a £2 billion loss after the biggest crisis in its history.
According to the Observer, Euan Sutherland will receive a base salary of £1.5 million this year, plus a £1.5 million retention payment. He joined the company in May last year, having been chief operating officer of B&Q owner Kingfisher.
The mutual argues that Mr Sutherland's proposed remuneration package will be in line with comparable firms and reflects the scale of the task he faces, the paper says.
But the pay award would come at a time when the group is facing large-scale job cuts after a disastrous year in which its banking arm needed rescuing due to a £1.5 billion hole in its balance sheet.
The Co-operative Bank is set to be the subject of an investigation by the city regulator.
The probe will "consider the role of former senior managers" at the lender, which underwent a rescue last year after a £1.5 billion black hole was discovered in its finances, the Bank of England's Prudential Regulation Authority said.
The shortfall was widely attributed to problems arising for the takeover of the Britannia building society and the failed bid to acquire more than 600 branches from Lloyds.
Questions about the bank's management have also been raised following the alleged drug revelations surrounding former bank chairman Paul Flowers.
We are have commissioned stringent ongoing independent testing on our own-brand products containing minced beef, as agreed with the Food Standards Agency. Today’s results have shown that, so far, no products in the current batch of those being tested have been found to contain horse DNA. Our tests are still ongoing and we continue to work with both the FSA and the British Retail Consortium, and expect to issue further updates in the next few days.
Two funeral workers have been sacked from Co-operative Funeral care for cremating the wrong body.
The mix-up saw staff place the wrong body in a coffin and send it to Birtley Crematorium in Gateshead, Tyne and Wear.
Grieving friends and family, who thought they were saying their final goodbyes to someone they loved, were actually saying farewell to a complete stranger.
Co-operative Funeralcare have apologised to the family, and sacked the two workers involved. A spokesman said:
A serious breach of our strict procedures occurred and following a thorough investigation two members of staff have been dismissed.
Once the issue came to light, we immediately notified the families concerned and apologised for any distress caused and we have liaised closely with the crematoria. We remain in close contact with the families.
Profits at the Co-operative Group have fallen by a third after its food stores suffered amid "fierce" competition from supermarkets and its banking arm was hit by the recession.
The group, which last year admitted it was battling the toughest conditions for 40 years, said its 3,000-strong food store division was also hurt by the wet weather as people drove to supermarkets rather than walk to local shops.
Underlying sales in the division fell 1.2% in the 26 weeks to June 30, whileoperating profits dropped 16% to £119 million.
Its banking division, which has agreed to buy 632 branches from Lloyds, also felt the pain, with operating profits down 67.9% to £36.9 million as it bore the brunt of the UK's double-dip recession.
With its two biggest divisions suffering, overall group profits fell 34% to £174 million.
A spokesperson for The Co-operative Group said: “Demand for fuel has remained high today with a small number of forecourts running out of fuel.
"However, fuel deliveries are running at a higher level to meet the increased demand, and, now that the possibility of a strike over Easter has been averted, we would expect normal purchasing patterns to return.”