Thomas Cook, the struggling travel company, has recently released its annual report which showed that the former chief executive of the company received a payout of over £1 million after his resignation.
This sum was on top of the additional £1.2 million that he received for his final years employment with the company.
The payout is made up of £850,000 that was a settlement because of his termination and the rest came out of his pension allowances and various other benefits that he haswith the company. Sam Wihagen is acting as the interim chief executive of the company and it has been reported that if he manages to get it back on track he is set to receive a bonus of over £1.3 million, this is in addition to the salary of £750,000 that he receives during the year.
Many staff will be concerned about these high pay figures as over 200 of them are facing an uncertain future after their outlets were scheduled for closure. The previous chief executive, Mr Fontenla-Novoa joined the company over 15 years ago after its acquisition of SunWorld, a company that he founded which was at the time one of the largest tour operators in the UK.
He left the role in August last year after shares fell by a third and the company issued its third profit warning of the year. Since his departure the firm has only faced further turmoil. End of year results were postponed last November while it was trying to negotiate an additional loan for £100 million from its banks.
Profits have fallen in the business by 70 percent in the last year and it has been estimated that the conflicts in Africa have cost the company at least £15 million. In the next few months it is expected that £200 million worth of assets will be sold.
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