Travel firm beached in row over bonus plan

Holiday company On the Beach is heading for a showdown with investors over plans to drop performance targets for its long-term bonus scheme. 

The online retailer said it wants to provide an incentive for directors who may not get a bonus if there is disruption to the travel market. This happened during the pandemic. 

Rivals including easyJet, Jet2 and British Airways-owner IAG have introduced similar policies. 

But proxy voting advisers Glass Lewis and Pirc have urged shareholders to vote down the plans at the group’s annual meeting this week. 

Glass Lewis said it has ‘severe reservations’ about the changes. 

Under the new bonus scheme, the chief executive would automatically receive 100 per cent of their salary in share options, which will not be available for five years. 

Previously, they could have received up to 200 per cent of their salary – but would have to hit a number of targets to get the full amount. 

Like all travel firms, On the Beach was hammered during the pandemic. But it is now benefiting from a rise in people booking package holidays. 

The £306million firm offers trips to hotspots including Spain, Turkey, Jamaica and St Lucia. Its chief executive is Simon Cooper, who founded the company in 2004. 

Another proxy adviser, Institutional Shareholder Services, has backed the plan. 

An On the Beach spokesman said the business had consulted with 80 per cent of shareholders and was ‘confident’ the new bonus programme is ‘fit for purpose in a post-Covid environment’.