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

[snoop1130]

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

 

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.

 

-- © Copyright Reuters 2019-10-15

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[Lungstib]

He can argue the case anyway he likes but an almost $1 million BONUS is surely not appropriate for a boss that oversaw the companies demise. Unless that is, they are now giving bankruptcy bonus'. 

[anterian]

He, ''worked tirelessly'' and looks very fit and healthy on it, no sleepless nights. 

[30la]

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 ???

[justin case]

those elite ceo always seem to land perfectly on their feet even they drove a company into oblivion and still needs to be paid in gold

[RichardColeman]

16 hours ago, snoop1130 said:

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

But any yearly share payout wouldn't be

[stevenl]

1 hour ago, justin case said:

those elite ceo always seem to land perfectly on their feet even they drove a company into oblivion and still needs to be paid in gold

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.

[Baerboxer]

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.

[Baerboxer]

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.

[Baerboxer]

2 hours ago, justin case said:

those elite ceo always seem to land perfectly on their feet even they drove a company into oblivion and still needs to be paid in gold

 

True. Very often poor performing CEO's and Senior Managers get paid off - with massive "golden parachutes". Companies pay them off to avoid a stink; and certainly avoid questions about who employed them and selected them in the first place!

[Cereal]

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

[BritManToo]

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.

[alan grice]

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


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[johnnybangkok]

The guy didn't do much wrong and deserves every penny he is owed. TC troubles started years ago when the then CEO, Manny Fontenla-Novoa (https://en.wikipedia.org/wiki/Manny_Fontenla-Novoa) racked up huge debts in a massive spending spree, buying MyTravel and other big name travel brands. 

Peter Fankhauser actually did quite well, getting the group back to profit in many areas (hence why he got the bonuses he did) but the debt of over 1 billion GBP was too much to shoulder and when the banks panicked, pulling the rug, the company went down. 

 

There was very little he could do about it.

 

[alan grice]

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


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[Kinnock]

I saw a study in a psychology magazine that showed an unusually high % of senior managers show psychopathic behaviours.

 

Here's proof.  Any normal person would have refused the bonus or donated it to a hardship fund for ex-employees.

 

Claw back 100% of his bonus, but leave him with the shares.

[gk10002000]

Got paid a bonus!?  As the company knew clearly it was headed for or already was insolvent?  Now you sue

[kingdong]

20 hours 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.

Why?he ran it,the buck stops with him.

[Pablosbmb]

On 10/16/2019 at 11:23 AM, alan grice said:

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


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Hense his job! How he gets paid! Closing down big business is profitable. 

[AussieBob18]

Happens all the time and in all countries. The excesses of the wealthy are limitless - they are all about their own bank accounts.  Mnay years ago there was an arbitrary limit put on what any senior manager in a public company could earn.  That was removed to encourage 'entrepreneurship' and to reward great business results (Bill Clinton).  Of course this resulted in exactly the opposite behaviours as CEOs and Boards 'strip mined' companies for the bonuses.  Most of them realise that if they do this too much the public will finally have had enough and demand change. So they 'manage' things to achieve maximum bonuses while not killing the 'golden goose'.  However - when the company starts into a tail spin that cannot be stopped, then they make sure they look after themselves for the next few years.  The previous CEO and Board was piad out when things were stuffed, and this CEO and Board did what they were paid to do - keep TC alive for as long as possible while they all made their money.  Dont worry - he and they will be fine and will get another gig shortly ???? And dont worry - it will all blow over and go away and everyone will forget about it soon enough. And the beat goes on.........