Thomas Cook has responded to shareholder pressure and reduced the maximum payout for its chief executive under a new long-term bonus plan, after a third of investors voted against it.
In the biggest revolt, 32.7% of the travel company’s shareholders opposed its plan to pay Peter Fankhauser a long-term bonus of up to 225% of his base salary of £703,000, worth about £1.6m a year.
In response, Thomas Cook reduced the maximum potential payout to 200% under the strategic share incentive plan (SSIP), but said it would not use it this year. If used, it would replace the current long-term bonus scheme, the performance share plan (PSP), which can in exceptional circumstances pay out 200%.