Directors ordered to repay bonus millions

THOMAS Cook’s directors have been told to pay back the millions of pounds in bonuses they made, as the company fell into liquidation.
Chief Executive Peter Fankhauser (pictured), who announced the company’s collapse in the early hours of Monday morning, has taken home £8.4m since 2014, including £4.6m in bonus payments, it has been claimed.
In total, directors at the UK’s oldest travel agency are accused of giving themselves a collective £47m in pay and bonuses over the last 10 years.
On Tuesday, the Prime Minister called for an investigation as he questioned whether bosses should pay themselves “large sums of money” as their businesses “go down the tubes”.
Shadow Chancellor John McDonnell said: “They have a moral responsibility to return their bonuses. They created this mess and there are large numbers of people losing their jobs. They should hand the money back to compensate those workers.”
Boris Johnson told reporters in New York: “I think the questions we’ve got to ask ourselves now are: ‘How can this thing be stopped from happening in the future?’
“How can we make sure that tour operators take proper precautions with their business models, where you don’t end up with a situation where the taxpayer, the state, is having to step in and bring people home?”
“I have questions about whether it’s right that the directors, or whoever, the board, should pay themselves large sums, when businesses can go down the tubes like that.”
When asked about sanctions on directors and tougher rules, the PM said: “I think you need to have some system by which tour operators insure themselves properly against this kind of eventuality.”
The directors’ conduct will come under the microscope as the Insolvency Services fast-tracks its probe into the circumstances surrounding the company going into liquidation.
And liquidators will now see if any money can be found, within the
25-plus Thomas Cook companies, to hand back to staff and creditors.
The travel agent had about 550 high street locations across the UK, but it leased its planes, rented its shops and acted as a broker with third-party hotels and cruise ships, all of which meant that it had minimal assets.
Thomas Cook’s rivals are being criticised for taking advantage of the thousands of people who have had flights cancelled, by hiking their prices. Ryanair, Jet2 and Tui were accused of doubling and trebling the cost of some flights, immediately after Thomas Cook announced it had gone under.

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Posted by on Sep 26 2019. Filed under Local News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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