Thomas Cook has revealed former chief executive Manny Fontenla-Novoa left the company with a £1.16m payoff despite the company's severe financial difficulties.
As it was so strapped for cash, the group had to ask Fontenla-Novoa, who resigned in August, to wait until the end of December to receive the bulk of his payment.
Its annual report, published yesterday, showed Fontenla-Novoa was paid 12-months basic salary and benefits after he resigned which, the company said, was in accordance with the terms of his contract. He did not receive a bonus.
Following his resignation, Thomas Cook went on to report a £398m pre-tax loss for the year ended September 30 and it was forced to borrow an extra £100m from banks to see it through the winter.
The group's new chairman designate Frank Meysman was critical of the former management in the annual report. He said he was disappointed that "management performance in certain areas fell short of the standards that we demand".
Yesterday it was announced that three long-standing non-executive directors, including the chairman of the remuneration committee Peter Middleton, are to stand-down at the conclusion of Thomas Cook's annual general meeting on February 8.
David Allvey and Bo Lerenius will join Middleton in retiring from the Board next month. Roger Burnell, the senior independent non-executive director, will retire next year.
By Linsey McNeill
