As you may be aware the Kuoni Group’s Annual Financial results for 2013 were published last week. Now that the results are public, I can be very specific about the GTS performance in 2013 and what it means.
Overall the results for Kuoni Group showed a solid performance with +2% turnover growth against 2012. This is very much the same story for GTS where we saw +0.1% turnover growth in Groups and +5.8% turnover growth in FIT.
Although I am pleased that the GTS business grew, we did not achieve the growth and EBIT targets that we expected and committed to the Board that we would achieve. Unfortunately, this means that we did not achieve the minimum targets that were necessary to make a payment under the Employee Bonus Plan 2013 (EBP) or the Performance Bonus Plan 2013 (PBP) and, as a result, no bonus payments will be made under the Plans.
However, I know that 2013 was a difficult year and that, despite the challenges, there were some real success stories across the business as we put the integration behind us and moved forward as a new Kuoni division.
Therefore, I have decided, following discussion with the Divisional Leadership Team of GTS (DLT) to pay a reduced, discretionary bonus for those employees who are eligible to participate in the 2013 PBP and EBP plans and meet certain performance criteria. If you are a participant on another plan you are not eligible for this discretionary bonus.
As part of our commitment to rewarding high performance, what you will receive under this discretionary bonus plan will depend upon your 2013 Performance Review rating and score. Please see the below table: