KLM CEO takes 20% salary cut until end of 2020
Today, at the annual general meeting of shareholders of KLM Royal Dutch Airlines, Pieter Elbers, the airline’s president & CEO, informed shareholders that he will take a 20% salary cut for the remainder of the year.
The corona crisis is having unprecedented impact on KLM. No one could ever have foreseen the current circumstances, with developments presenting themselves at a rapid rate in recent weeks. It is now clear that the impact of this crisis is not only immense, but will continue for some time. This will demand greater focus on costs and extra efforts from everyone. Today I informed the Supervisory Board and the annual general meeting of shareholders that I will take a 20% cut in fixed salary until the end of the year.
I am confident that KLM will weather this storm and I am proud of the flexibility and dedication of the entire KLM workforce under these difficult circumstances. I am also grateful for the loyalty we are still seeing from our customers and for the support being offered to businesses by the Dutch government. Together, we will continue focusing on retaining as many jobs as possible for KLM staff and on utilising our route network optimally in the interests of broader Dutch society.
KLM previously decided and announced the following in response to the corona crisis: the fixed salaries of the Board of Managing Directors will not be increased in 2020, pay-out of variable remuneration for 2019 has been postponed, and board members have waived their right to variable remuneration for 2020. Furthermore, the previously proposed amendment of future executive remuneration policy, initially scheduled for discussion at today’s shareholder meeting, was scrapped from the agenda.
The Supervisory Board is grateful for the excellent manner in which the KLM management has teamed up with all KLM staff to address this unprecedented crisis. We also appreciate Pieter’s initiative to take a cut in his fixed salary. Previously, the KLM Supervisory Board and Board of Managing Directors agreed to waive their right to variable remuneration and salary increases in 2020. The proposal to amend future remuneration policy should not have been placed on the agenda.
Appointments to the KLM Supervisory Board
The shareholders today voted in favour of appointing Christian Nibourel to the KLM Supervisory Board. Mr Nibourel is currently chairman of the consultancy OneUp. He was previously CEO of Accenture for the Benelux and France. He succeeds Philippe Calavia, who will step down after eight years on the KLM Supervisory Board.
The shareholders also voted in favour of the reappointment of François Enaud and Pierre-François Riolacci for a second four-year term on the KLM Supervisory Board.
Allocation of results
During the meeting, the allocation of results was also explained. Of the EUR 449 million in net income earned in 2019, EUR 429 million will be added to the KLM reserves. A sum of EUR 20.6 million will be paid out to the holders of ordinary shares, priority shares, cumulative preferential A shares, and cumulative preferential C shares. It has been agreed that the sum earmarked for AIR FRANCE KLM as a shareholder (EUR 20 million) will not be paid out at present.