Select a region
The former CEO of the Co-op is suing his ex-employers for over £1 million, claiming he was the victim of a “bullying and smear campaign” by members of the Board.
Colin Macleod, who worked for the retailer between 1990 and 2020, is seeking damages for psychiatric and physical illness he claims he suffered as a result of work-related stress.
In an order of justice before the Royal Court, Mr Macleod claims he was being “set up to fail”, with members of the Board’s remuneration committee holding meetings in secret and undermining his ability to direct the day-to-day affairs of the organisation.
Pictured: Colin Macleod worked for the Co-op between 1990 and 2020.
Mr Macleod started working at the Co-op in 1990 as a Management Trainee. He progressed through a variety of roles before being appointed as CEO in 2010.
He was appointed to the Board in 2018 but he was signed off work in May 2019 and his contract terminated ten months later – although he had indicated that he was ready to return to work.
Among the other complaints he makes are that access to the Coop’s email systems were removed while he was on sick leave and that one of the directors was in breach of their duties by applying for Mr MacLeod’s job as CEO.
Mr MacLeod’s claims are all denied by the Co-op.
Mr Macleod claims that from 2017 to 2019 the Board became "increasingly dysfunctional" and that its Recruitment and Remuneration sub-committee "increasingly displayed an entrenched and factional mindset", allegedly involving "private clandestine meetings".
He is arguing that this "undermined" both the Board and his ability to direct day-to-day affairs.
Pictured: Mr MacLeod’s claims are all denied by the Co-op.
Mr Macleod 's complaint adds that the Board meetings got "more and more difficult" to the point where he started to "dread" them, claiming that they had become "increasingly unpredictable and hostile".
The Co-op denies that the meetings of the Board were “dysfunctional”, but admitted that “two informal groups had emerged arguing for different approaches” to the governance of the company.
Describing the two groups as “the modernists” and “the traditionalists”, the Co-op claims that Mr Macleod was “resistant to greater scrutiny” of his performance and the performance of the company.
“This tension did not make the Board ‘dysfunctional’ but rather signalled a need for change,” according to the Co-op.
The retailer also denies that the meetings of the Recruitment and Renumeration Committee were “clandestine” – but admitted that “it was not appropriate for [Mr Macleod] to be at all such meetings”.
Mr Macleod claims he was "repeatedly being set up to fail", with results judged as not being good enough "no matter how good" they were.
The complaint adds that he raised concerns about the Board to its President at the time, but that "no action was taken".
The Co-op denies that Mr Macleod "was repeatedly being set up to fail”, pointing out that this sits “ill at ease” with the fact that Mr Macleod was the highest graded employee the company had.
The Order of Justice explains that senior executives at the Co-op are graded between 85% and 115%.
As of May 2019, Mr Macleod's grading was 113% – the highest grading of any manager in the Co-op's employment.
In response to the claim that Mr Macleod “began to dread the Board meetings”, the Co-op said that “such a reaction would have been only known” to the former CEO himself.
The supermarket said that it “had no knowledge of the same”, but said that Mr Macleod “was often evasive and defensive when asked direct questions about matters of Board concern”.
Mr Macleod claims he was the subject of a "bullying and a smear campaign" by a group of Board members, primarily consisting of those on the sub-committee – which he argues had a "dominating influence on the whole Board".
He also claims that he was "erroneously" sent emails "evidencing that he was subject of this smear campaign" by members of the sub-committee, which "unjustifiably" criticised him and the senior management team, adding that this included "serious unfounded allegations".
The complaint goes on to say that resulting stress led to Mr Macleod gaining weight and drinking more alcohol, and that he began to experience "insomnia, and feelings of powerlessness and low self-worth".
Also citing an "increasing and untenable workload", his complaint states that by the time of a "very difficult Board meeting" in May 2019, Mr Macleod had started "shaking", had "pulsing sensations in his eyes" and had developed "numbness in his left hand and arm" along with high blood pressure.
It alleges that he was shouted at "aggressively" during the meeting.
The complaint adds that, after being signed off on sick-leave with "work related stress" later that month, Mr Macleod's symptoms included "decreased energy, broken sleep, weight gain and anxiety".
It states that, from August that year, he was experiencing "marked depressive symptoms, low mood, decreased energy, lack of enjoyment, broken sleep and poor concentration" as well as "PTSD symptoms of flashbacks" and nightmares.
Pictured: The retailer also denies that the meetings of the Recruitment and Renumeration Committee were “clandestine”.
The Co-op denies that there was any form of bully or smear campaign.
The food company admits that “the modernisers” became a majority on the Board – but denies that there was “anything sinister” about this.
The Co-op also rejects Mr Macleod’s claim that the Recruitment and Renumeration Committee "exerted a dominating influence on the whole Board”.
The company notes that the Committee members “were not a numerical majority on the main Board”.
“Obtaining a majority in favour of any change and/or improvement to governance is how companies are run and corporate policy is made,” the Co-op added.
The food shop also pointed to an email from Mr Macleod to the Recruitment and Renumeration Committee members following a meeting in May 2019 which thanked them for "the constructive way in which you all engaged”.
At a hearing last month, Royal Court Commissioner Matthew Thompson sat alone – in place of either the Master of the Royal Court or the Judicial Greffier who were both conflicted – to resolve a number of preliminary issues relating to the discovery of relevant documents by both parties, particularly emails and WhatsApp messages held on personal devices.
The Commissioner also directed that Mr MacLeod should file his witness statement within 28 days and the evidence of his other witnesses within 14 days of the outstanding documents being provided by the Coop.
He indicated that the Coop would then have 21 days, following receipt of Mr MacLeod’s evidence, to file its oral evidence in reply.
Follow Express for updates...
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.