Dutch government to challenge multimillion-euro executive pay at KLM and Air France-KLM
The Dutch government will formally oppose the compensation packages of both the KLM CEO and the head of parent company Air France-KLM after new figures showed multimillion-euro earnings for top executives, AD reports.
The move follows revelations in the airline group’s annual report that Ben Smith, CEO of Air France-KLM, earned 5.1 million euros last year — more than three times the total compensation of Marjan Rintel, who leads KLM.
Dutch Finance Minister Eelco Heinen had already announced opposition to Rintel’s pay and said the government would extend that objection to Smith’s compensation, according to a ministry spokesperson.
“I find the amount truly inappropriate,” Heinen said in an interview with RTL Z. “Especially now that the challenges are great, you should exercise restraint. If you ask your staff to make sacrifices, then you must share that burden together. The top is sending the wrong signal.”
According to the annual report, Smith received a base salary of more than 1 million euros, supplemented by bonuses and shares, bringing his total compensation to 5.1 million euros. Rintel’s fixed annual salary stood at 600,000 euros, with her total compensation reaching 1.6 million euros after additional pay components.
The Dutch Ministry of Finance stated that the compensation levels do not align with the remuneration policy that the Netherlands applies as a shareholder in Air France-KLM. Under that policy, variable pay should not exceed 20 percent of the fixed salary for executives at state-linked companies.
