Travel firm beached in row over bonus plan
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Vacation company On the Beach faces confrontation with investors over plans to drop performance targets for its long-term incentive plan
Vacation company On the Beach is heading for a confrontation with investors over plans to drop performance targets for its long-term incentive plan.
The online retailer said it wants to give an incentive to drivers who may not receive a bonus if there is disruption in the travel market. This happened during the pandemic.
Rivals such as easyJet, Jet2 and British Airways owner IAG have introduced similar policies.
Best foot forward: Under the new bonus scheme, the CEO would automatically receive 100 percent of his salary in stock options
But proxy voting advisers Glass Lewis and Pirc have urged shareholders to vote against the plans at the group’s annual meeting this week.
Glass Lewis said he had “serious reservations” about the changes.
Under the new bonus plan, the CEO would automatically receive 100 percent of his salary in stock options, which will not be available for five years.
Previously, they could receive up to 200 percent of their salary, but had to meet a number of goals to get the full amount.
Like all travel companies, On the Beach was hit hard during the pandemic. But it is now benefiting from a rise in the number of people booking package holidays.
The £306 million company offers trips to hotspots including Spain, Turkey, Jamaica and St. Lucia. The CEO is Simon Cooper, who founded the company in 2004.
Another proxy advisor, Institutional Shareholder Services, has supported the plan.
An On the Beach spokesperson said the company had consulted 80 percent of shareholders and was “convinced” that the new bonus program is “fit for purpose in a post-Covid environment.”