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| Thomas Cook shares crash after Harriet Green is pushed out | Thomas Cook shares crash after Harriet Green is pushed out |
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| Harriet Green has been pushed out as chief executive of Thomas Cook ahead of schedule, in a move that stunned the City when announced on Wednesday morning. | Harriet Green has been pushed out as chief executive of Thomas Cook ahead of schedule, in a move that stunned the City when announced on Wednesday morning. |
| The news of Green’s departure caused the tour operator’s market value to slump by £400m. Only five days ago Green, who had been tasked with turning around the company’s fortunes, had told an “Inspiring Women” conference: “You can’t do a transformation on this sort of scale in a year or two years. I usually say it’s about six years ... we’re absolutely not done.” | |
| Green has left with immediate effect with Peter Fankhauser, the chief operating officer, taking over. Fankhauser, who has worked at Thomas Cook for 13 years, survived Green’s management cull and was promoted to operations chief a year ago. Thomas Cook’s chairman, Frank Meysman, said Green had left because the company needed someone with more travel industry experience. He added that she would be paid her six months’ notice, and that the board had been unanimous that it was the right time for her to hand over to Fankhauser. | Green has left with immediate effect with Peter Fankhauser, the chief operating officer, taking over. Fankhauser, who has worked at Thomas Cook for 13 years, survived Green’s management cull and was promoted to operations chief a year ago. Thomas Cook’s chairman, Frank Meysman, said Green had left because the company needed someone with more travel industry experience. He added that she would be paid her six months’ notice, and that the board had been unanimous that it was the right time for her to hand over to Fankhauser. |
| One company insider said: “Is she going maybe a year earlier than she wanted? Probably.” | One company insider said: “Is she going maybe a year earlier than she wanted? Probably.” |
| Another insider confirmed that Green’s exit was premature: “What was in everyone’s mind was that Peter would take over. The question was when. What has been agreed most recently is when.” | Another insider confirmed that Green’s exit was premature: “What was in everyone’s mind was that Peter would take over. The question was when. What has been agreed most recently is when.” |
| The company was keen to stress that Green had done a “phenomenal” job, having been credited with bringing the tour operator back from the brink of bankruptcy but that the group now needed a leader with expertise in the sector. | The company was keen to stress that Green had done a “phenomenal” job, having been credited with bringing the tour operator back from the brink of bankruptcy but that the group now needed a leader with expertise in the sector. |
| Thomas Cook shares plunged 22% to 107p on the news, plunging its market value down from more than £2bn to £1.56bn. The group also warned that trading had become more difficult and growth would be slower in the current financial year. Business in Germany has weakened as consumer confidence has dropped in Europe’s biggest economy and the UK winter programme failed to fill increased capacity. | Thomas Cook shares plunged 22% to 107p on the news, plunging its market value down from more than £2bn to £1.56bn. The group also warned that trading had become more difficult and growth would be slower in the current financial year. Business in Germany has weakened as consumer confidence has dropped in Europe’s biggest economy and the UK winter programme failed to fill increased capacity. |
| Meysman said: “It’s a different balance of requirements that is needed going forward. Knowledge of the market and implementation of the strategy that Harriet has set out is more important than continuous strategy. She loved this job tremendously but she has always been very realistic that this job will end at some point in time.” | Meysman said: “It’s a different balance of requirements that is needed going forward. Knowledge of the market and implementation of the strategy that Harriet has set out is more important than continuous strategy. She loved this job tremendously but she has always been very realistic that this job will end at some point in time.” |
| Green was paid £2.86m in 2013, including £680,000 salary and a bonus of £1.79m. Meysman said she would be paid six months’ notice, according to her contract, and her performance-based share awards. “She will make a substantial amount of money if the shares continue to go up and she will deserve a substantial amount of money,” he said. | Green was paid £2.86m in 2013, including £680,000 salary and a bonus of £1.79m. Meysman said she would be paid six months’ notice, according to her contract, and her performance-based share awards. “She will make a substantial amount of money if the shares continue to go up and she will deserve a substantial amount of money,” he said. |
| Chris Beauchamp, market analyst at IG, said: “Investors will be right to ask questions over how her departure will affect the turnaround plan, so expect much of the price reaction today to be in connection to this.” | Chris Beauchamp, market analyst at IG, said: “Investors will be right to ask questions over how her departure will affect the turnaround plan, so expect much of the price reaction today to be in connection to this.” |
| Beauchamp added that the warning on more moderate growth this year “is a sign that the easy bit has been done”. | Beauchamp added that the warning on more moderate growth this year “is a sign that the easy bit has been done”. |
| Green, known for minimal sleep and high-intensity workouts in the gym at 5am, joined the travel firm from Premier Farnell, the electrical products company, when Thomas Cook’s market value was £148m. She slashed 2,500 jobs, cut debt, brought in new managers, revamped holiday packages, and increased internet sales. She was named Veuve Clicquot businesswoman of the year in May. | Green, known for minimal sleep and high-intensity workouts in the gym at 5am, joined the travel firm from Premier Farnell, the electrical products company, when Thomas Cook’s market value was £148m. She slashed 2,500 jobs, cut debt, brought in new managers, revamped holiday packages, and increased internet sales. She was named Veuve Clicquot businesswoman of the year in May. |
| One of the few female chief executives of a leading UK public company, Green said in a statement: “I always said that I would move on to another company with fresh challenges once my work was complete. That time is now. I wish all of the team at this re-energised company continued success, as they move to the next phase of the company’s development.” | One of the few female chief executives of a leading UK public company, Green said in a statement: “I always said that I would move on to another company with fresh challenges once my work was complete. That time is now. I wish all of the team at this re-energised company continued success, as they move to the next phase of the company’s development.” |
| Her departure was announced as Thomas Cook posted an annual pretax loss of £114m, down from £163m a year earlier. Earnings before interest and tax rose 44% to £323m. | Her departure was announced as Thomas Cook posted an annual pretax loss of £114m, down from £163m a year earlier. Earnings before interest and tax rose 44% to £323m. |