He will have to wait a while before everything is paid to him, because according to European rules he may only be paid certain bonuses if a large part of the state aid received has been repaid.
Smith’s base salary was $900,000. But in addition, according to the company, he also earned variable compensation of almost 1.1 million euros. He has also been promised a share package of 2 million euros. His total reward would amount to almost 4.3 million euros. Smith owes the bonuses to efforts in the field of sustainability, among other things. For example, steps were taken to use cleaner fuel and new aircraft with lower CO2 emissions were ordered.
However, the Franco-Dutch airline company ended up with an annual loss of almost 3.3 billion euros. Due to the corona pandemic and many travel restrictions, Air France-KLM again had a hard time. In the first half of last year in particular, the company struggled with the restrictions that applied in the Netherlands and France, among other places.
A KLM spokeswoman emphasizes that the remuneration policy at KLM is arranged differently than at the parent company. That is also necessary, which in 2020 is subject to the condition that there may be no bonus bestsen for the loan during the term of the relevant loans when granting aid by the Dutch government. The figures about KLM will soon be detailed in KLM’s annual report itself.
Ben Smith is responsible for the departure of popular KLM CEO Pieter Elbers by blocking another four-year term. Elbers will say goodbye to KLM on 1 July and will be succeeded by NS top woman Marjan Rintel.