KLM withdraws controversial CEO bonus plan | Financial

“We have decided to withdraw the item regarding changes to the remuneration policy and thereby remove it from the agenda of the upcoming shareholders’ meeting,” KLM reports on behalf of the supervisory board.

On Friday, De Telegraaf revealed that the supervisory board intended to increase the variable remuneration to 100% of the basic salary of € 520,000, where it was now 75%. Although the airline has suspended the payment of bonuses and profit sharing in connection with the corona crisis, politics fell massively over KLM.

“In the current context, the difference between policy and its implementation is lost. Unfortunately, the proposal to adjust the policy itself has given the wrong picture and has also led to unrest. It would have been better not to put this topic on the agenda and it is now off the table, ”said President Commissioner Cees’ t Hart.

Minister Hoekstra (Finance) said on Friday evening that he would not support the proposal. The airline is negotiating a guarantee from the Dutch state for loans to help KLM through the crisis.

CEO Pieter Elbers says in a reaction that the unrest about the adjustment of the long-term remuneration policy is “very unfortunate.” “I deeply regret this.”

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