Former Thomas Cook Boss To Net £5.7m Award

A former boss of Thomas Cook (Xetra: A0MR3W - news) will receive a lower-than-expected payout following recent scrutiny of the company's response to the deaths of two children in Corfu nine years ago.

The company has confirmed it is awarding Harriet Green 4.1 million shares at the lower end of expectations, as Sky News reported last weekend .

Sources had said that under the terms of her exit from the firm, she was potentially entitled to 7.1 million shares.

During her two-and-a-half years at Thomas Cook, she presided over share price growth from 16.25p in July 2012 to 136p in November last year.

Her award is worth roughly £5.7m, based on the current share price of 137.9p.

Ms Green's payout has provoked anger amid a string of revelations about the company's handling of the deaths of Bobby and Christi Shepherd , who were killed by carbon monoxide poisoning while staying at a Thomas Cook-affiliated hotel in Corfu in 2006.

But it was also confirmed that the former boss, who was credited with rescuing the company from financial ruin, is to donate a third of her award - approximately £1.9m - to charities nominated by the children's parents and backed by the company.

Thomas Cook said: "This would include a substantial donation to a carbon monoxide charity to support the work of the recently launched joint initiative with Thomas Cook to fund research into protection from carbon monoxide, limit the risks associated with it and raise general awareness of the related dangers.

"The parents of Christi and Bobby Shepherd expressed their satisfaction with this outcome."

Ms Green had previously faced criticism from the bereaved parents for failing to consult them over her initial decision to donate part of her payout to charity.

Sharon Wood, the children's mother, said the offer was an attempt by Ms Green to "salve her conscience" and accused her of refusing to meet the family during her time at the helm of Thomas‎ Cook.

Ms Green has denied that she had neglected the family's wishes, insisting that she had written to them during her tenure to arrange a meeting.

A civil inquest - which Thomas Cook had tried to block - ruled the company had breached its duty of care to its customers.

The company has suffered fierce backlash for its handling of the tragedy, with Peter Fankhauser, Ms Green's successor, eventually publicly apologising , but only after it emerged that Thomas Cook had received a larger payout ‎than the family.

The company then pledged to donate the money to UNICEF, the children's charity, but did so without consulting the parents.

Ms Green, who is a director of BAE Systems (LSE: BA.L - news) , the defence contractor, is in talks about jobs on both sides of the Atlantic but is expected to opt for a US-based role, according to people who know her.