The Men Who Run TUI Travel PLC

What you need to know about the top executives of travel firm TUI Travel PLC (LON:TT)

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Management can make all the difference to a company’s success and thus its share price.

The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.

In this series, I’m assessing the boardrooms of companies within the FTSE 100. I hope to separate the management teams that are worth following from those that are not. Today I am looking at TUI Travel (LSE: TT), the UK’s largest travel company in which TUI AG has a 56% controlling interest.

Here are the key directors:

Director Position
Friedrich Joussen (non-exec) Chairman
Peter Long Chief Executive
Johan Lundgren Deputy Chief Executive
William Waggott Finance Director
Dr Volker Böttcher Managing Director, German specialist businesses

Appointed as CEO of parent TUI AG in February this year, Friedrich Joussen became chairman of TUI Travel in March. Prior to joining TUI AG last year, he was CEO of Vodafone Germany for eight years, and chief operating officer for two years before that. His prior career was spent with Mannesman Mobilfunk (mobile) from 1988 until its acquisition by Vodafone. As a sop to his lack of independence, TUI Travel’s senior independent director is given the title of deputy chairman.


Peter Long has been CEO since 2007 when First Choice Holidays merged with the tourism division of TUI AG (including Thomson Travel) to form TUI Travel. He had been First Choice’s CEO since 1999, and had held finance and executive roles in the leisure industry before that. TUI Travel’s shares have risen 45% since its formation, against a 7% rise for the FTSE 100 and a 45% decline for struggling (and now recovering) competitor Thomas Cook.

Johan Lundgren has been on the board since 2007, and was elevated to deputy chief executive in 2011. He has 26 years experience in the travel industry, coming from the TUI AG side of the 2007 merger.

William Waggott also joined the board in 2007, as commercial director, becoming finance director in 2010. A chartered accountant, he worked in finance roles with Courtaulds before joining Airtours and later Thomson Travel, a TUI AG subsidiary, prior to the 2007 merger.

Volker Böttcher has also been a director since 2007. A former lawyer, he moved from legal to managerial roles within the travel sector in Germany, and was CEO of TUI Germany immediately prior to the merger.


TUI Travel’s board includes two directors of TUI AG, its finance director and its “operating performance director”. In addition to the deputy chairman there are seven independent non execs, making for eight independents facing up against seven group employees on an unwieldy 15-strong board.

I analyse management teams from five different angles to help work out a verdict. Here’s my assessment:

1. Reputation. Management CVs and track record.


 Score 4/5

2. Performance. Success at the company.


Score 4/5

3. Board Composition. Skills, experience, balance.

Barely independent. 

 Score 2/5

4. Remuneration. Fairness of pay, link to performance.


 Score 3/5

5. Directors’ Holdings, compared to their pay.

CEO has £12m-worth, other execs £1m plus. 

 Score 4/5

Overall, TUI Travel scores 17 out of 25, a middling result. The company has fared well under the current leadership, in a difficult economic environment, but in truth operates more as a subsidiary of TUI AG than as an independent company, an impression reinforced by regular speculation of TUI AG buying out the minority shareholders.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page.

Buffett’s favourite FTSE share

Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His recent acquisition, Heinz, has long had a reputation for strong management. Indeed Mr Buffett praised its “excellent management” alongside its high quality products and continuous innovation.

So I think it’s important to tell you about the FTSE 100 company in which the billionaire stock-picker has a substantial stake. A special free report from The Motley Fool — “The One UK Share Warren Buffett Loves” — explains Mr Buffett’s purchase and investing logic in full.

And Mr Buffett, don’t forget, rarely invests outside his native United States, which to my mind makes this British blue chip — and its management — all the more attractive. So why not download the report today? It’s totally free and comes with no further obligation.

> Tony owns shares in Vodafone, but no other shares mentioned in this article. The Motley Fool has recommended Vodafone.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

I reckon these 2 penny shares are hidden gems worth a closer look!

Some penny shares are well-known, whereas many others go under the radar, but that doesn’t necessarily mean they aren’t potentially…

Read more »

Investing Articles

Just released: our 3 best dividend-focused stocks to buy before August [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Investing Articles

2 FTSE 100 shares with blockbuster yields investors should consider buying

Our writer has noticed that these FTSE 100 shares offer mammoth dividend yields, and reckons investors should take a closer…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Down 36% and yielding 7.8%, is this FTSE 250 share a bargain?

Christopher Ruane looks at a FTSE 250 share with a sizeable dividend yield and a recent record of dividend growth.…

Read more »

Investing Articles

Is Barclays one of the FTSE 100’s best bargain stocks?

Right now, Barclays' shares are cheaper than those of FTSE 100 rival stocks Lloyds and NatWest. So should I buy…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Is a takeover offer about to boost the Rentokil stock price, and should I buy?

The Rentokil share price is up 10% on takeover rumours. Is it a stock to buy or one to be…

Read more »

Investing Articles

Here’s my Rolls-Royce dividend forecast for 2024-27!

Our writer considers whether the Rolls-Royce dividend might be reinstated in coming years, based on financial performance and stated payout…

Read more »

Investing Articles

What would I do if Rolls-Royce shares plunged 50%? History suggests a big decline is coming

While Rolls-Royce shares have delivered massive outperformance in recent years, they also have a history of significant declines.

Read more »