Tui Travel trims executive pay

Tui Travel trims executive pay

Tui Travel paid its directors £1.3 million less in salary and bonuses in the year to September than the previous year despite the group’s strong performance.

Group chief executive Peter Long earned £448,000 less in salary and bonuses in 2010-11 than in the previous year, deputy chief executive Johan Lundgren was paid almost £370,000 less and chief financial officer Will Waggott £267,000 less.

Long was paid almost £1.62 million in salary and bonus, Lundgren £1.04 million and Waggott £848,000.

Tui Travel, Europe’s biggest travel group, reported an underlying operating profit of £471 million for the 2010-11 financial year, 18% up on 2009-10. Its statutory operating profit was £217 million and profit before tax £144 million, compared with a £73 million loss a year earlier.

The company turned in healthy figures despite a 20% decline in the UK market since 2008.

Long and his colleagues did benefit from additional pension contributions – in Long’s case to the value of £425,000. But these were in line with the previous two years. Long and other executives also enjoyed a deferred annual bonus scheme, a proportion of it in shares and worth £744,000 to Long.

The group’s share price has fallen from a high of £2.75 over the 12 months and was £1.60 at close of trading on Friday.

Tui Travel’s share price performed better than an index of travel-related companies over the period, but behind the FTSE 250 index on which the group is now listed. It fell out of the FTSE 100 last summer.

The remuneration details appear in the group’s annual report released on Friday. This reported UK trading figures for this winter and summer 2012 that were released already in early December.


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