Dutch finance minister says Air France CEO pay ‘incomprehensible’

Benjamin Smith, Chief Govt Officer of Air France-KLM, leaves after a go to within the very first Air France airliner’s Airbus A220 all through a ceremony in the Air France hangar at Paris Charles de Gaulle airport in Roissy close to Paris, France, September 29, 2021. REUTERS/Gonzalo Fuentes

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

“It is unacceptable and what I really never have an understanding of is that you could want this and that folks feel this is ok,” Sigrid Kaag explained in an job interview with Dutch broadcaster RTL after the publication of the airline’s yearly report.

This confirmed that Air France-KLM Main Government Ben Smith would receive a number of million euros in fork out, advantages and yearly and long-term bonuses in 2021, even though the bonuses will be deferred.

A spokesperson for Air France reported that Smith’s set pay back has been unchanged considering the fact that prior to the pandemic and observed that he will not obtain any bonuses he has been awarded right until Air France has repaid most of the bailout cash it been given all through the pandemic.

Kaag claimed the Dutch point out, which bought a 14.3% stake in Air France-KLM in 2019 in order to work out a lot more affect over it, would vote versus Smith’s fork out at the annual meeting in May perhaps.

The Dutch government agreed a 3.4 billion euro bailout package of financial loans and financial loan assures for Air France’s Dutch subsidiary KLM in 2020, as aspect of a wider bailout for Air France.

Smith agreed to give up his bonus and a quarter of his salary in 2020 following an outcry in excess of his pay out in the Netherlands.

Air France’s annual report confirmed that Smith was awarded foundation spend of 900,000 euros in 2021, added benefits of 287,000 euros, an annual bonus of 1.1 million euros and a extended term reward of 1 million euros.

Having said that, the bonuses will be deferred, underneath a decision by the European Fee, right up until Air France-KLM has repaid 75% of its bailout funds.

($1 = .9132 euros)

Reporting by Toby Sterling Editing by Alexander Smith

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