Thomas Cook's financial struggle has turned personal with some of its largest shareholders questioning the leadership of chief executive Manny Fontenla-Novoa.
Alarmed at Cook's plunging share price and shrinking profits, one of the company's 10 largest investors reportedly told The Times there was "pressure building on the chief executive".
Earlier this year, Thomas Cook narrowly avoided a narrowly avoided a shareholder revolt over its decision to pay top managers bonuses that failed to take into account the £82m lost due to the ash cloud last April.
A significant minority of the Group's shareholders opposed its decision to ignore the impact of the ash cloud when calculating share bonuses for its top executives, including Fontenla-Novoa, who is paid a salary before bonuses of £850,000.
However, 60% of shareholders voted in favour of the Board's remuneration report, which awarded bonus shares to around 100 Thomas Cook managers, at the annual general meeting.
Since then, Thomas Cook has issued a profits warning that sent the share price plunging 45% in a week, knocking £470m off the company's market value.
Institutional investors are now querying the direction of the company which has been led by Fontenla-Novoa since 2007. They are especially concerned at his decision to expand Cook's retail chain via a merger with the Cooperative Group and Midlands Co-op to create the UK's largest high street travel chain with more than 1,200 shops at a time when holiday bookings are increasingly shifting online.
The Competition Commission, which is investigation whether the merger should be allowed to go ahead, will announce its provisional findings tomorrow.
A spokesman for Thomas Cook's downplayed the report in The Times, saying it referred to only a small number of investors.
Cook's has already announced a strategic review of its business which could include narrowing its range of holidays. Further details are expected to be announced next month.
By Linsey McNeill
