New blood needed
to revive Thomson
IN YEARS to come Thomson Travel Group will probably be used on economics A’ level courses as a case-study in how not to run a public company.
While the float made millions for board members, hundreds of thousands of ordinary people who paid £500 for a stake in the company 16 months’ ago have an investment currently worth around £300.
It all sounds like a nightmare for the new chief executive who will fill Paul Brett’s shoes.
But it’s just about the best job in the holiday business, because the basic product is still very good.
Most companies perform badly because their products are rubbish, overpriced or outdated. But while Thomson’s board has been found wanting, the holidays division continues to set standards for mass-market holidays.
So, the chief executive position is a great job for someone, particularly with healthy share options which will be worth a fortune if the company takes off.
Acting chief executive Roger Burnell was originally seen by the City as part of the problem, not the cure. But Burnell’s making all the right noises about capacity cuts.
Whoever gets the job must have the courage to bring in new people on the board to help make sweeping changes if Thomson is to realise its potential.
Just getting rid of Brett and pretending everything is OK is papering over the cracks.
Jeremy Skidmore – editor