Investors secure boss’s pay pledge

Shareholders protest over Thomas Cook incentive plans

Shareholders with Peterborough-based Thomas Cook have secured a promise from bosses to consult over a new pay incentive scheme for its chief executive. More than 32 per cent of shareholders voted against proposals for a strategic share incentive plan (SSIP) that would have seen Peter Fankhauser paid up to 225 per cent of his £703,800 base salary.

In addition, more than 20 per cent of shareholders at the company’ s annual meeting voted against the directors’ remuneration report.

Afterwards, a Thomas Cook spokesman said :“While the board is pleased that the resolutions have received shareholder approval, it also acknowledges the views of the shareholders who voted against.

“As a result, the Remuneration Committee reconfirms its intention not to use the SSIP in the current financial year.

“If and when it does decide to make any future award under the SSIP, it commits to consult fully with major shareholders and their rep- resentatives.”

He said the amount payable would be capped at 200 per cent. The investors’ protest came as Thomas Cook, which employs 1,115 people at Westpoint, Lynch Wood, warned it was taking a cautious outlook to the year ahead.

New figures show revenue at the company rose by one per cent to £1.6 billion in the three months to December 31 last year. It said its summer 2017 trading is positive with overall bookings up nine per cent. Bookings for holidays in Greece are up more than 40 per cent which has helped offset a fall in bookings to Turkey following terror outrages.

The Peterborough offices of Thomas Cook, which has moved to reassure investors over top pay.