Thomas Cook has reportedly been hit by a shareholder revolt over executive pay.
The travel giant revealed that 25.3% of investors who voted at its AGM had opposed its remuneration report.
Cook said that shareholder concerns “relate to the timing of disclosure of EPS [earnings-per-share] targets in respect of the long-term incentive plan [LTIP] and the level of disclosure around adjustments made for the purpose of calculating the FY15 bonus,” the Daily Telegraph reported
Shareholders are understood to be unhappy that Cook will only disclose the 2018 EPS targets for its executive share award plan after the LTIPs have paid out.
Investors want to know the targets in advance but Cook believes they are commercially sensitive because they essentially amount to a profit forecast, the newspaper reported.
Investors have also argued that Cook did not adequately explain adjustments made to staff bonuses by the remuneration committee to compensate for the financial impact of last June’s terrorist attack on tourists in Tunisia. The changes boosted the bonuses by about 10%.
“We acknowledge these concerns and plan to engage further with shareholders during 2016 on a number of matters as part of a planned review of our remuneration policy,” Cook said, adding that the new policy will be voted on at next year’s AGM.
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