Remuneration of KLM CEO
The KLM Supervisory Board has decided that, effective 2017, the fixed salary of KLM President & CEO Pieter Elbers will be raised to equal that of his immediate predecessor, who left the company three years ago. This effectively amounts to an increase of 5%. Even with this increase, Mr Elbers’ salary is significantly lower than that of previous KLM CEOs.
In addition, KLM has a variable remuneration scheme adjusted in accordance with the company’s results. KLM’s statutory directors also fall under this scheme, which is based on predetermined criteria. In 2016, KLM posted excellent results within the AFKL Group. KLM’s profits increased from EUR 384 million to EUR 681 million in 2016. This means that Mr Elbers will be paid a higher bonus for 2016.
For 2016, KLM will pay a total of EUR 93 million in profit sharing to KLM staff, compared to EUR 7 million the previous year. This profit-sharing scheme does not extend to Mr Elbers and KLM’s other statutory directors.
The remuneration policy and payments to directors are stated into the KLM Annual Report for 2016 and will be clarified during the KLM’s Annual General Meeting of Shareholders in April. Preparations for this meeting are currently still underway. KLM was compelled to issue this statement early, owing to reports in the French press.