NEWS — SPECIAL REPORT
Harriet Green’s two-year tenure as
chief executive saw her close 367 shops, axe 2,500 staff and
lift the Thomas Cook share price from 14p to £1.37 the day before her departure
The sudden departure of Thomas Cook’s chief executive raised eyebrows. What now for her successor? By LEE HAYHURST
Thomas Cook bosses were at pains last week to portray the departure of chief executive Harriet Green as an orderly succession to an experienced management team. Speaking to trade media on
a call that had to be delayed due to the furore surrounding Green’s surprise exit, chairman Frank Meysman praised her achievements. He said she had come in from outside the industry and brought new “paradigms” to Cook, increasing profitability and helping the travel giant to “move forward on the web”.
Meysman denied suggestions
that Green was pushed out but said the move had unanimous backing among both executive and non-executives on the board of Thomas Cook.
“Harriet has done a great job that
Timing Pressed on the timing of Green’s departure, Meysman said Cook’s transformation plan was ahead of track and now was the right time to change chief executive. Although Green’s exit distracted
attention from Cook’s full-year results, Meysman said it was thought better to change leader at the start of a financial year. “Harriet Green felt her
contribution was probably on the maximum level at this point in time,” he said. “We felt this was the right thing to do now rather than in a year’s time.”
has allowed us to make some paradigm shifts”
“The truth is that a process has been building over the last year after we promoted Peter [Fankhauser] to chief operating officer,” he said. “In that time it was clear to anybody inside the company, and hopefully to people on the outside, that Peter was going to be the most likely successor. “It was a
matter of when. We are doing
more things faster than before and what was initially planned to
take three years has taken two to two-and-half years. Therefore, this was the right time to move from one top executive to another top executive.”
Delivery Fankhauser said he was honoured to be taking over the reins. “We have achieved a lot over the last two years and now it’s all about execution and delivery,” he said. He stressed he would bring his own “authentic” style to the
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travelweekly.co.uk — 4 December 2014
role. “There is no change to the strategy and execution. Everyone has his own style,” he added. “The strategy is set in stone. The
team around me were part of the developing of the strategy and are 100% backing it. This is what I have done all my life – make things happen in the travel industry. This is not about particular people, it’s about performance. Going forward we have to perform.”
Experience Meysman vowed Cook would be transparent with its numbers and open about aspects of the business that are challenging. And he said Cook now has an experienced senior executive team in place with a deep understanding of the travel sector to take Green’s reforms forward. Fankhauser’s chief lieutenants
are the highly rated pair of chief financial officer Michael Healy and chief air travel officer Christoph Debus.
“Harriet has done a great job that has allowed us to make some paradigm shifts in terms of how we talk about our uniqueness, and in attracting excellent people in all areas,” said Meysman. “Going forward, it really is a
matter of how we implement that in the travel business and what does that mean in terms of our product offering.” ❯ Letters, page 34
COMMENT
Cook recovery still has a way to go
Harriet Green’s departure was planned only in so far as chairman Frank Meysman decided she should go and the board agreed. No listed company would happily choose to change its chief executive in such a fashion. An 18% fall in the share price showed investors shared that view. It’s true Peter Fankhauser
was in line to replace Green. The question is the timing. Tension between chairman and chief executive will be one factor. But the key was the state of the company. Thomas Cook has come a
long way since 2011 but has a way to go. Green had her critics. But she restored Cook’s reputation with the City and cut its debt from £788 million to £326 million. Fankhauser will bring a different style and industry knowledge. He has something to build on.
Ian Taylor, executive editor, Travel Weekly
SPECIAL REPORT
Why did Harriet Green leave now?
PICTURE: PAUL BROADRICK PHOTOGRAPHY
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