Thomas Cook ex-boss defends £500,000 bonus payment

October 15, 2019 by No Comments


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Media captionThomas Cook ex-boss on bonus: ‘It’s not up to me’

Thomas Cook’s former boss has defended a bonus payment of £500,000 and said he was not the only one to blame for the collapse of the holiday operator.

Peter Fankhauser told a cross-party committee of MPs that he worked “tirelessly” for Thomas Cook.

While he was sorry for the collapse, he said the reasons were “not one-sided”.

Committee chair Rachel Reeves, who asked Mr Fankhauser if he would give the bonus back, told Mr Fankhauser his apologies rang “rather hollow”.

Mr Fankhauser and other members of Thomas Cook’s former management were being grilled by MPs over what led to the liquidation of the business which cost thousands of jobs and left many holidaymakers stranded overseas.

  • Staff back at work in former Thomas Cook shops
  • Thomas Cook buyers pledge to save 555 shops and 2,500 jobs

The former chief executive said that he did not receive a bonus in 2018 but had received a £750,000 bonus in 2017 – two-thirds of which was in cash, the rest was in shares.

‘Deeply sorry’

Ms Reeves asked Mr Fankhauser if he would return money to repay taxpayers for the massive repatriation programme to bring 150,000 holidaymakers back to the UK and help fund redundancy payments to staff.

He said: “I fully understand the sentiment in the public and I understand the sentiment of some of our colleagues.

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

“But it was not one-sided that I failed. There was multiple parties who had to contribute to the deal which finally then did not succeed.”

Mr Fankhauser said, on reflection, he will “consider what is right but I’m not going to decide that today”.

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Media captionFomer Thomas Cook staff back at work

Ms Reeves asked the former chief executive of Thomas Cook why he held on so long for a financing deal to save the company which he “knew was never going to happen”?

Mr Fankhauser said he was “confident” it was going to happen: “Otherwise I would not have tried so hard and I had the backing from the banks and I had the substantive agreement on 28 August from the banks and the bondholders.”

Last week, Sunderland-based firm Hays Travel announced that it would take over 555 Thomas Cook shops, in a deal that could potentially save 2,500 jobs.

Mr Fankhauser said the announcement was “honestly one of the bright days in the last three weeks”.