Thomas Cook Set For Payout To Ex-Boss Green

The former chief executive of Thomas Cook (Xetra: A0MR3W - news) is to 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.

Sky News understands that Thomas Cook, which is one of several involved in repatriating British holiday-makers from Tunisia after Friday’s terrorist attack, is planning to announce details of a multimillion pound share award to Harriet Green early next week.

Sources said this weekend that Ms Green would receive a payout at the lower end of a range of 4.1m-7.1m shares to which she is entitled under the terms of her exit from Thomas Cook last year.

That award is worth between roughly £5.9m and £10.2m, based on Friday's closing share price of 144.2p.

One person close to Thomas Cook said it remained possible that the company would announce a further reduction to the award below the minimum 4.1m shares on the basis of recent reputational damage to the Thomas Cook name, although they added that such an outcome was unlikely.

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.

Insiders said the former boss, who joined Thomas Cook in 2012 and quit after being lauded for her role in rescuing it from financial ruin, would seek to donate a third of her award to a carbon monoxide awareness initiative recently set up by the children’s parents and backed by the company.

A final decision on whether the initiative would be the recipient of her donation would be made after consulting with the family and Thomas Cook, a source added.

In its statement after her resignation, the company said its boardroom pay committee “will assess performance by reference to the period to June 2015 subject to a minimum vesting in respect of the award granted in September 2012 based on the extent to which the performance targets were met immediately before the date it was announced that Harriet Green would be stepping down”.

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.

She has 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 that the company had breached its duty of care to its customers.

The company has also come under attack 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.