Thomas Cook pays former chief £1.17m

The former chief executive of Thomas Cook received £1.17 million from the travel agency after he resigned, despite the group’s deteriorating performance under his watch.

The holiday giant’s annual report revealed Manny Fontenla-Novoa received the payout on top of the £1.19m earned in his last year of employment until he resigned in August following a string of profit warnings.

The £1.17m payment consisted of salary, pension allowance and benefits, and was owed to Fontenla-Novoa in accordance to his contract terms. After Fontenla-Novoa resigned, Thomas Cook fell on even harder times, culminating in a cry for help to its lenders and a decision to axe some 200 shops and cut hundreds of jobs.

The annual report was published as the group announced a boardroom clearout with the departure of three of its longest-serving non-executive directors.

David Allvey, Bo Lerenius and Peter Middleton will retire after the annual meeting in February, as the firm looks to “refresh” and “strengthen” its board.

Thomas Cook, which has 1,300 shops, has already set out a turnaround plan, focusing on higher-quality hotels.