Ex-Thomas Cook boss defends record after collapse of firm
The former chief executive of bankrupt travel firm Thomas Cook said that he understood public anger over his pay but defended his record, saying he had worked tirelessly to try to save the company.
Thomas Cook, the world’s oldest travel firm, collapsed last month after it failed to finalise a restructuring plan, stranding over 100,000 passengers.
Peter Fankhauser apologised again to customers, staff, and suppliers as he appeared before a British parliamentary committee, and said responsibility for the collapse was shared among several parties who tried, and failed, to agree the rescue deal.
Asked about his salary, which totalled £1.02m (€925,000) in 2018 including pension and benefits, Mr Fankhauser said he did not set his own pay or decide any bonus.
“I’m not going to try and defend my base pay, because in relation to a normal worker’s base salary, this is an enormous amount,” he said.
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.
Mr Fankhauser said his efforts to transform the company after his appointment in 2014 had been constrained by its debts. He said that a £750,000 bonus he was paid in 2017 could theoretically be clawed back, but 30% was paid in shares which were now worthless.
He said he would take some time to reflect on what was the right thing to do with his pay after business committee chair Rachel Reeves said it could be put to better use if it funded redundancy packages for his colleagues.
“The number of times you’ve said “sorry”, it just rings rather hollow when you’re not willing to put something back,” she said.
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.
Management said a deal was possible until the final hours before the company failed, and that banks and shareholder Fosun would have backed a deal to save the company if there had been government support.
The former chief executive of bankrupt travel firm Thomas Cook said that he understood public anger over his pay but defended his record, saying he had worked tirelessly to try to save the company.
