Tui has quashed claims that its board of directors have refused to take a pay cut while 11,000 staff are furloughed.
A Mail on Sunday article said the company’s ‘top brass’ would be receiving full pay, but no bonuses, while furloughed staff took home 80% of their wages.
But Tui told Travel Weekly that executive directors had agreed to a 30% reduction in their basic salary as well as being unlikely to receive bonuses this year.
A statement said: “We are aware of the article in the Mail on Sunday and we would like to clarify our position. All levels of Tui senior management, in different geographical regions, including Germany and the UK are committed to making financial contributions during this uncertain time for our industry. On March 20, 2020, a Tui colleague communication confirmed the Tui Group Executive Board has decided to pay itself a 30% lower basic salary from April, as are the UK&I Board.
“The variable remuneration [bonuses], which is targeted at 60-70% of total remuneration, is geared to ambitious and challenging financial, operational and strategic objectives. Due to the economic impact of the Corona crisis we do expect that the variable remuneration for the current financial year will be fully omitted.”
The Mail on Sunday later updated its follow-up story to refect the travel giant’s statement.
Tui, which dropped out of the FTSE100 last month as its share price took a hit because of the impact of the coronavirus on travel, has received a £1.6 billion bailout from the German government.
Executives at British Airways parent International Airlines Group, easyJet, Virgin Atlantic and Heathrow airport have all taken pay cuts amid the ongoing crisis.
Chief executive Fritz Joussen made £1.57million in 2019; David Burling, chief executive of markets and airlines, made £820,000; chief financial officer Birgit Conix £816,000; Sebastian Ebel, who runs resorts and cruises, £866,000; HR director Elke Eller, £962,000; and IT director Frank Rosenberger, £969,000.