KLM executives got 32% higher bonuses in 2023 despite profit decline
KLM’s top executives allegedly saw increases in their bonuses for 2023, despite the airline experiencing a decline in profits and operational setbacks, De Telegraaf reports. According to the airline's recently published annual report, the company’s executive team received 32 percent higher short-term bonuses compared to the previous year.
Marjan Rintel, KLM's president-director, reportedly earned over 600,000 euros in base salary, along with bonuses and allowances totaling more than 600,000 euros. Chief Operating Officer Maarten Stienen and Chief Financial Officer Bas Brauns collectively received 530,950 euros in short-term bonuses, reflecting a 32 percent increase. Although Brauns joined KLM in April 2023, his bonus increased by 36 percent, reaching 137,500 euros, according to De Telegraaf. Earlier in the year, KLM reportedly withheld bonuses for part of 2023 due to restrictions imposed by a government loan package.
In addition to short-term bonuses, KLM issued long-term incentives in the form of stock options, which could be cashed in over several years. The value of these stock options at the end of the year was reportedly 777,439 euros.
KLM also reported that former CFO Erik Swelheim received a severance package worth nearly 800,000 euros when he left the company in September 2023. With taxes on the termination payment, the total cost of his departure amounted to almost 1 million euros.
The total compensation for KLM's executive board in 2023 amounted to 3.7 million euros, marking an increase of nearly 40 percent compared to the previous year.
KLM's financial performance, however, showed a significant decline. The airline posted a net profit of 70 million euros in 2023, down from 713 million euros in 2022. This was reportedly partly due to a high number of cancellations earlier in the year, attributed to weather conditions and runway maintenance.
Maarten Stienen, whose base salary increased by 12 percent to 370,000 euros, told De Telegraaf that the pay increases were in line with contractual agreements and collective bargaining agreements (CAO) at KLM. He noted that the adjustments reflected the responsibilities of the roles and were competitive with similar positions in the Netherlands.
The airline’s board of commissioners also received pay increases of 18 percent and 32 percent, which KLM attributed to a benchmarking study comparing its compensation to other companies.
The board stated that while the executive compensation was lower than the market average, the performance-related bonuses had been adjusted. “KLM remains under the benchmark for executive compensation, which is important to ensure that salaries are competitive and market-conform,” the board said.
