December 31, 2004
MyTravel reveals size of chief's pay deal
By Dominic Walsh
PETER McHUGH, head of MyTravel, the ailing tour operator formerly known as Airtours, receives an annual London housing allowance of £50,000 and 15 free flights a year back to his home in the United States for him and his wife.
Although MyTravel, once the UK’s biggest tour operator, has regular flights to the US through its MyTravel Airways, Mr McHugh, who was promoted from head of its US division to group chief executive in October 2002, and his wife are allowed to fly first class or business on any airline they choose.
A spokeswoman for MyTravel said last night that flying on his own company’s airline for trips back to his American home would be impractical. “MyTravel Airways is more of a leisure operator. [The McHughs] book whatever flight is most suitable,” she said.
According to the listing particulars issued in conjunction with an £800 million debt-for-equity swap, Mr McHugh also receives a “product review allowance” of £25,000 a year.
Mr McHugh, who has an annual salary of £535,000, is about to become £1.5 million richer as a reward for completing a complex financial restructuring, of which the debtfor-equity swap forms the main plank.
A further £500,000 will become payable on publication of the 2005 results.
Although shareholders, who have seen their investments all but wiped out over the past two disastrous years, may balk at Mr McHugh’s rewards, it could have been worse.
If he had failed to push through the refinancing, MyTravel would be preparing to call in the receivers.
Despite some limited impact from the Asian earthquake disaster, MyTravel is expected to face a more stable future.
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