FIRST Choice
bosses collected bonuses of up to 43% of their salaries last year while the
average rise for staff was a mere 3.75%.
News of the
whopping pay-outs, revealed in the operator’s annual report and accounts for
last year, comes hot on the heels of similar bonuses paid to senior Airtours
executives, revealed exclusively by Travel Weekly (January 7).
The biggest earner
at the Crawley-based operator was chief executive Peter Long, whose £435,000
salary was inflated by bonus payments worth £188,000.
Adding pension
contributions, his total package was worth £732,000.
Next up was
managing director UK and Ireland Dermot Blastland, who added bonuses of
£113,000 to his £273,000 basic pay.
First Choice axed
around 1,100 staff worldwide as part of cost-cutting measures after the
September 11 terrorist attacks, with around 500 of these going in the UK.
Despite the vast
job losses, a First Choice spokeswoman said the packages were in line with the
company’s policy of paying top salaries to attract the best senior staff.
“The bonuses to
executive directors totalled £362,000 last year, down from £502,000 in 2000, so
they do reflect trading conditions. Our payment structure cannot be compared to
Airtours,” she said.
The report shows
Air 2000 managing director Ken Smith collected a salary of £195,000 (£77,000
bonus) while non-executive chairman Ian Clubb collected a total of £166,000.
Former finance
director David Howell, who left to join Lastminute.com in May last year, was
paid a £200,000 ‘golden goodbye’ to go along with his £111,000 wage.
In addition to the salaries, the report reveals First Choice directors
cashed in on share options worth more than £712,000. Long benefited most,
selling shares totalling £259,935.