Home » Economy » Air France-KLM CEO forfeits bonus under Dutch pressure
Air France-KLM CEO forfeits bonus under Dutch pressure
Airlines face historic cash crunch amid coronavirus
Analysts say airline ticket sales may not rebound until 2025. FOX Business’ Hillary Vaughn with more.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Continue Reading Below
Air France-KLM (AIRF.PA) Chief Executive Ben Smith said on Thursday he had given up his 2020 bonus, after a Dutch minister urged executive pay restraint in return for the billions of euros in government aid sought by the airline group.
AIR FRANCE-KLM S.A.
Smith, who had offered in March to trim his pay in response to the coronavirus crisis, said in a statement the cut “includes forfeiting my annual short-term variable compensation”.
AIRLINE DEMAND WILL NOT RETURN UNTIL CORONAVIRUS SOLVED: SEN. CRAMER
The move follows an outcry in the Netherlands over new performance criteria that appeared to reward the CEO for attracting state aid – prompting Dutch Finance minister Wopke Hoekstra to call publicly for his bonus to be scrapped.
“Bonuses in these times of crisis are unwise and incompatible with support funded by taxpayers’ money,” Hoekstra told Dutch newspaper De Telegraaf.