MP suggests Thomas Cook cash for bonuses could go to ex-staff
LEEDS WEST MP Rachel Reeves has launched blistering attacks on the bosses of failed holiday firm Thomas Cook as the chief executive defended his bonus of more than half a million pounds.
Appearing in front of the Commons’ Business, Energy and Industrial Strategy Committee yesterday – of which Ms Reeves is chair – ex-chief executive Peter Fankhauser said he was “deeply sorry” for the company’s collapse.
But Ms Reeves said his apologies would “ring a bit more true” if he was willing to pay back his 2017 bonus worth more than half a million pounds in cash. The money could be “put to better purpose” such as redundancy payments or compensation for taxpayers, she added.
She said: “At the moment I’m afraid, Mr Fankhauser, the number of times you’ve said sorry, it just rings rather hollow when you’re not willing to put something back.”
Mr Frankhauser replied: “In my reflections I will take that back, chair, and I will consider what is right, but I’m not going to decide that today.”
Several former Thomas Cook workers attended the committee hearing – some in their uniforms – to watch Mr Fankhauser and four other senior company figures give evidence.
In his opening remarks, he said: “I really want to repeat it in front of the members of the select committee, how deeply sorry we are that we couldn’t save this iconic brand and this company who has a long, long standing history in this part of the UK industry.”
But MPs were quick to call into question some of the accounting policies including the decision to include a £2.5bn “goodwill” value on the business in 2018. They also asked the bosses why they based bonuses on profits that excluded one-off payments.
Ms Reeves said: “The proof of the pudding is somewhat in the eating and you failed to turn around this business. In the end you couldn’t just hide these numbers (exceptionals) forever, they caught up with you.”