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AMSTERDAM, April 5 (Reuters) – The Dutch minister of finance reported on Tuesday that the proposed 2021 pay out package deal for Air France-KLM’s CEO was “incomprehensible” in a year when it shed 3.3 billion euros ($3.6 billion) amid the COVID-19 pandemic.
“It’s unacceptable and what I seriously you should not fully grasp is that you could want this and that individuals believe this is alright,” Sigrid Kaag reported in an interview with Dutch broadcaster RTL following the publication of the airline’s once-a-year report.
This confirmed that Air France-KLM Main Executive Ben Smith would acquire a number of million euros in fork out, benefits and annual and extensive-term bonuses in 2021, whilst the bonuses will be deferred.
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A spokesperson for Air France claimed that Smith’s fixed pay back has been unchanged considering the fact that before the pandemic and famous that he will not obtain any bonuses he has been awarded right until Air France has repaid most of the bailout funds it gained throughout the pandemic.
Kaag said the Dutch state, which purchased a 14.3% stake in Air France-KLM in 2019 in purchase to exercise more impact about it, would vote versus Smith’s fork out at the annual assembly in May perhaps.
The Dutch authorities agreed a 3.4 billion euro bailout package deal of loans and loan ensures for Air France’s Dutch subsidiary KLM in 2020, as section of a broader bailout for Air France.
Smith agreed to give up his bonus and a quarter of his wage in 2020 following an outcry around his fork out in the Netherlands.
Air France’s yearly report showed that Smith was awarded foundation pay out of 900,000 euros in 2021, positive aspects of 287,000 euros, an annual reward of 1.1 million euros and a extended expression reward of 1 million euros.
However, the bonuses will be deferred, under a choice by the European Fee, until Air France-KLM has repaid 75% of its bailout dollars.
($1 = .9132 euros)
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Reporting by Toby Sterling Modifying by Alexander Smith
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