MONDAY, 13 JUL 2020



Facebook Linked In Twitter

Emily Yiolitis: Resumption Of Cyprus Talks Require Termination Of Turkish Provocations

Nicos Christodoulides Attends Crucial EU Foreign Affairs Council



brought to you by CIPA

Thomas Cook: MPs to Question PwC on Possible Conflict of Interest

Thomas Cook: MPs to Question PwC on Possible Conflict of Interest

Bosses at PricewaterhouseCoopers will be grilled by MPs on Tuesday over a possible conflict of interest after it emerged that the accountancy firm advised Thomas Cook executives about their pay and bonuses while it was also the travel company’s external auditor, The Guardian reports.

A parliamentary inquiry into the collapse of Thomas Cook is under way and is focusing on executive pay, accounting practices and the role of auditors. At a sometimes combative hearing on 15 October, the fallen tour operator’s bosses drew stinging criticism for the millions of pounds of bonuses paid to directors in the years running up to its demise.

In its recent written submission to MPs, the Institute of Directors talked about “the allegedly aggressive accounting methods” adopted at Thomas Cook. Meanwhile, in recent days both MPs and the IoD have voiced concerns that directors’ pay and bonuses were calculated on profit numbers that excluded one-off negative items. “Were accounting judgements therefore being affected by executive pay considerations?” asked the IoD.

PwC audited the business between 2008 and 2016, with EY taking over the following year. Now it has come to light that for a period of time, PwC performed a dual role as both the Thomas Cook remuneration committee’s adviser and the company’s external auditor.

Thomas Cook’s 2009 annual report stated that the remuneration committee “was mindful of the dual role” performed by PwC. It said: “PwC held this dual role because prior to the merger they had acted as remuneration adviser to MyTravel Group plc and external auditor to Thomas Cook.”

During this period, there was anger among many investors at pay awards for the company’s then-bosses. A vote over boardroom pay in 2008 received just 4% support from independent shareholders after a one-off £5m bonus was given to then-chief executive Manny Fontenla-Novoa.

In June 2009, another firm, Kepler Associates, was appointed external adviser to the remuneration committee.

In 2016, rules were introduced that meant auditors could no longer provide any remuneration advice.

On 22 October, MPs on the business, energy and industrial strategy (BEIS) committee are due to question executives from both PwC and EY. The inquiry’s terms of reference specifically include accounting practices “and the audits conducted by PwC and EY”.

Britain’s accounting watchdog, the Financial Reporting Council, has already begun an investigation into EY’s audit of Thomas Cook’s accounts.

Commenting on its past dual role at Thomas Cook, PwC said: “The non-audit work as advisers to the remuneration committee, which ceased in 2009, was approved in advance by the audit committee, complied with all relevant regulatory standards, and was disclosed in the company’s annual reports.”


Tesla Shareholders Urged To Vote Elon Musk Out Over His $55bn Executive Bonus

Tesla investors are being urged to vote to remove Elon Musk, the electric vehicle ...

Google To Delete Its Saved User Records After 18 Months

Google will no longer save a complete record of every search made by new users, the ...

EU Students To Be Charged More By UK Universities From September 2021

Students from the European Union wishing to study in Britain from the 2021 academic year ...



EY Cyprus And The Cyprus University Of Technology Sign A Protocol Of Cooperation

EY Cyprus and the Cyprus University of Technology have signed a protocol of cooperation, on Monday, July 6, in Limassol, in order to provide and exchange ...

Total Government Employment At 52, 455 Staff

According to a press release by Cystat, in June 2020, total government employment increased by 15 persons in comparison to the corresponding month of 2019 and ...

Cyprus Marine Club Announces New Board Of Directors

The Annual General Meeting (AGM) was opened by Secretary General, Julia Paczkowska and then followed by Capt. Koch, Cyprus Marine Club ...

Nicos Christodoulides Attends Crucial EU Foreign Affairs Council

Cyprus’ Minister of Foreign Affairs Nikos Christodoulides will be in Brussels today to participate in the EU Foreign Affairs Council, which for the first ...

Wizz Air Abu Dhabi Announces New Route To Larnaca

Wizz Air Abu Dhabi, the newest national airline of the United Arab Emirates, announced today a highly anticipated route from Abu Dhabi to Larnaca starting on ...

Emily Yiolitis: Resumption Of Cyprus Talks Require Termination Of Turkish Provocations

Any prospects for the resumption of UN-led talks for a settlement to the Cyprus problem would require the termination of the Turkish provocative violations of ...

CSR During a Pandemic

Katerina Biloruska, Chairwoman of the non-profit Parimatch Foundation, explains how it has helped in the fight against COVID-19, whilst staying true to its ...

John Lewis to Close Eight Stores Permanently

John Lewis has announced it is permanently closing eight of its stores, putting 1,300 workers at risk, the BBC reports. The retailer said it had to ...