Thomas Cook CEO given £1.17m payout
Wednesday 04 January 2012
The former chief executive of Thomas Cook received £1.17 million from the company after he resigned, despite the group's deteriorating performance under his watch.
The holiday giant's annual report revealed Manny Fontenla-Novoa received the payout on top of the £1.19 million earned in his last year of employment until he resigned in August following a string of profit warnings.
The £1.17 million payment consisted of salary, pension allowance and benefits, and was owed to Mr Fontenla-Novoa in accordance to his contract terms.
After Mr Fontenla-Novoa resigned, Thomas Cook fell on even harder times, culminating in a cry for help to its lenders and a decision to axe some 200 shops and cut hundreds of jobs as it moves to save the business.
Elsewhere, the report reveals that interim chief executive Sam Weihagen, who was set to retire, was awarded an annual salary of £750,000 with a potential annual bonus of £1.3 million or 175% of salary if he successfully gets the business back on track.
The annual report was published as the group announced a boardroom clearout with the departure of three of its longest-serving non-executive directors.
David Allvey, Bo Lerenius and Peter Middleton, three of its longest-serving board members, will retire after the annual meeting on February 8, as the firm looks to make a fresh start.
Thomas Cook, which has 1,300 shops, has set out a turnaround plan for the UK business, including focusing on fewer and better quality hotels and a drive for more online bookings.
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