MyTravel defends £3.5m paid to chief executive
MyTravel has defended the whopping £3.5 million paid to chief executive Peter McHugh as he guided the company to financial security.
McHugh received a basic salary in the 13 month period to October 31 of £535,000 which was supplemented with a bonus of the same amount.
In addition, he pocketed a cool £2 million following the restructuring of the company and a further £482,000 in ‘benefits’.
A MyTravel spokesman emphasised the £2m bonus followed the “successful restructuring” of the business.
“2005 was a good year for MyTravel in which we continued to make progress towards our strategic goals,” the spokesman said. “Excluding the impact of fuel, we would have been a year ahead of our turnaround targets and we continue to target an operational profit of 3.5% in the UK in 2007.”
McHugh can take much of the credit for the turnaround of MyTravel which was in turmoil after posting a £190 million loss in 2003.
Other senior directors were also well rewarded for keeping the business afloat.
Finance director John Allkins received a handsome £1.23 million, including a basic salary of £350,000, a bonus of £350,000 and an additional half a million for the successful restructure.
Details of the payouts are included in MyTravel’s 2005 Annual Report which is available on the company website.
Report by Steve Jones
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Gatwick braces for strike