first choice bosses awarded massive bonuses

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.