Dutch finance minister says Air France CEO pay ‘incomprehensible’

Benjamin Smith, Main Govt Officer of Air France-KLM, leaves immediately after a take a look at inside the initial Air France airliner’s Airbus A220 all through a ceremony in the Air France hangar at Paris Charles de Gaulle airport in Roissy around Paris, France, September 29, 2021. REUTERS/Gonzalo Fuentes

AMSTERDAM, April 5 (Reuters) – The Dutch minister of finance said on Tuesday that the proposed 2021 shell out package deal for Air France-KLM’s CEO was “incomprehensible” in a 12 months when it dropped 3.3 billion euros ($3.6 billion) amid the COVID-19 pandemic.

“It is unacceptable and what I truly never recognize is that you could want this and that men and women assume this is alright,” Sigrid Kaag claimed in an job interview with Dutch broadcaster RTL following the publication of the airline’s annual report.

This confirmed that Air France-KLM Main Government Ben Smith would receive many million euros in fork out, benefits and yearly and very long-phrase bonuses in 2021, although the bonuses will be deferred.

A spokesperson for Air France mentioned that Smith’s fastened fork out has been unchanged due to the fact in advance of the pandemic and pointed out that he will not get any bonuses he has been awarded until eventually Air France has repaid most of the bailout cash it been given for the duration of the pandemic.

Kaag stated the Dutch state, which purchased a 14.3% stake in Air France-KLM in 2019 in buy to physical exercise more affect in excess of it, would vote from Smith’s shell out at the once-a-year meeting in May possibly.

The Dutch governing administration agreed a 3.4 billion euro bailout deal of financial loans and personal loan assures for Air France’s Dutch subsidiary KLM in 2020, as portion of a broader bailout for Air France.

Smith agreed to give up his bonus and a quarter of his wage in 2020 soon after an outcry over his fork out in the Netherlands.

Air France’s yearly report confirmed that Smith was awarded foundation shell out of 900,000 euros in 2021, rewards of 287,000 euros, an yearly bonus of 1.1 million euros and a extended time period reward of 1 million euros.

However, the bonuses will be deferred, less than a decision by the European Commission, until finally Air France-KLM has repaid 75% of its bailout funds.

($1 = .9132 euros)

Reporting by Toby Sterling Modifying by Alexander Smith

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