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Former Thomas Cook boss defends record, pay after firm's collapse

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Former Thomas Cook boss defends record, pay after firm's collapse

 

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People walk past a closed Thomas Cook travel agents store near Manchester, Britain, October 9, 2019. REUTERS/Phil Noble/Files

 

LONDON (Reuters) - The former chief executive of bankrupt travel firm Thomas Cook on Tuesday said he understood public anger over his pay but defended his record, saying he had worked tirelessly to try and save the company.

 

Thomas Cook collapsed last month, stranding over a hundred thousand passengers as its UK business went into liquidation.

 

Appearing before a British parliamentary committee, Peter Fankhauser again apologised to customers, staff and suppliers for the firm’s collapse but did not say if he would hand back any of his pay.

 

Asked about his salary, Fankhauser said he did not set his own pay or decide his bonus.

 

“I fully understand the sentiment in the public,” he told the committee.

 

“However, what I can say to that is that I worked tirelessly for the success of this company and I’m deeply sorry that I was not able to secure the deal.”

 

He said that a 750,000 pound ($949,950) bonus he was paid in 2017 could theoretically be clawed back, but 30% was paid in shares which were now worthless.

 

Fankhauser said that his efforts to transform the company on his appointment in 2014 had been constrained by its debts, and that responsibility for the collapse was shared between multiple parties who tried, and failed, to agree a restructuring plan.

 

The firm collapsed after it became unable to service its debts and failed to convince banks to back a rescue plan in the face of changing customer habits and intense competition from low-cost airlines and internet companies.

 

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-- © Copyright Reuters 2019-10-15
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14 hours ago, snoop1130 said:

 

He said that a 750,000 pound ($949,950) bonus he was paid in 2017

How is it possible for a person to receive sums of this kind without really doing his duty?
In such a situation we only talk about the unemployed resulting from this mismanagement, who thinks of all the families ???

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16 hours ago, snoop1130 said:

but 30% was paid in shares which were now worthless.

But any yearly share payout wouldn't be

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3 hours ago, 30la said:

How is it possible for a person to receive sums of this kind without really doing his duty?
In such a situation we only talk about the unemployed resulting from this mismanagement, who thinks of all the families ???

 

Because the board and senior managers look after themselves and couldn't give a toss about anyone else, in many cases.

 

And, as has been shown many times, auditors aren't always worth their fat salaries either.

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1 hour ago, stevenl said:

From what I have read from travel business insiders he did a very good job, and the TC demise can not be put on his plate.

 

Maybe so. But that doesn't justify such a large bonus and remuneration package given that the firm was in severe debt problems.

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6 minutes ago, Cereal said:

Those Thomas Cook people are idiots. I would have ran the company into the ground for 1/2 that!

I'd have done it for 1/4 (they can keep their shares though), and a load of free holidays.

Edited by BritManToo
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Unexeptable Face Of Capitalism as Ted Heath once said.Lined all the pockets , then pulled plug.[emoji222]


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Twaddle he new that , but he took it on with full knowledge of the eventual outcome.


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