Bottom Line: Bonuses are well-deserved for boss who’s leading turnaround

 
Elizabeth Fournier
WHEN Thomas Cook announced its first operating profit in three years last month, chief executive Harriet Green made it clear this was no time to rest on any laurels.

Despite more than halving losses and growing revenues, one-off costs meant the travel firm was still in the red on a pre-tax basis, so Green stepped up and announced yet another round of cost cuts and targets to take the firm all the way to 2015. Those targets are ambitious – more than £700m in new revenues; a compound annual growth rate of 3.5 per cent; and an improvement in underlying gross margins of more than 1.5 per cent – all from a base of nothing back in 2012.

But hitting similarly tough targets last year is why Green’s been handed her (well deserved) bonus. There’s no reason she can’t do it again.

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