KLM withdraws proposal to adjust executive remuneration
Following CEO’s earlier decision to waive bonus for fiscal 2020
The KLM Supervisory Board and KLM’s President & CEO have jointly decided to withdraw an item proposing adjustment of executive remuneration, which was on the agenda for KLM’s upcoming annual general meeting of shareholders. The purpose of the proposal was to adjust longer-term incentive structure, better aligning KLM’s remuneration policy with Air France-KLM’s policy for CEOs. This proposal was prepared long before the corona crisis gained momentum.
In view of the impact of the corona crisis, it was decided in consultation with the CEO that no bonus would be paid for the 2020 fiscal year. Earlier, it was decided that no fixed salary increases will be paid to members of the board of managing directors for 2020. There will be no dividend pay-out either.
Pieter Elbers, KLM President & CEO: “The unrest surrounding this adjustment of remuneration policy is unfortunate. I therefore asked the KLM Supervisory Board to withdraw the item on adjustment of remuneration policy from the agenda of the AGM. My own focus, and that of my KLM colleagues, is on the continuity of our company and on retaining KLM for the Netherlands. That should be topic of discussion, and not remuneration. It is regrettable that this has caused so much turmoil.”
Cees ‘t Hart, Chairman of the KLM Supervisory Board: “Within the current context, the difference between policy and execution of the policy is lost. With regard to the execution of policy, we had already decided, in consultation with the CEO, to waive variable remuneration for 2020. The proposal to adjust remuneration policy has, unfortunately, given the wrong impression and caused unrest. It would have been better to leave this item off the agenda, which is why we have now withdrawn it. This decision will also give KLM the opportunity align its future remuneration policy with the conditions that the Netherlands government is likely to impose on support measures.”