Remuneration of the KLM Board of Managing Directors in 2021
Today, 8 April 2022, KLM Royal Dutch Airlines released its annual report for 2021, which still clearly shows the impact of the coronavirus pandemic on KLM. The annual report includes a statement on remuneration of the KLM Board of Managing Directors. As was the case in 2020, no variable remuneration (bonuses) will be paid for 2021, constituting a reduction of 47% for CEO Pieter Elbers and 34% for COO René de Groot and CFO Erik Swelheim, compared to 2019.
In July 2020, one of the conditions that the Dutch government imposed on the provision of loans to KLM was that no variable remuneration would be paid to executive management during the term of the loans. Consequently, no short-term bonuses or long-term variable assets (shares) were allotted to the board or executives for 2021.
Another government condition is that KLM employees who earn three times the average income should make an employment conditions-based contribution of at least 20%. In 2021, the KLM Board’s remuneration was reduced by 47% (Elbers) and 34% (Swelheim and De Groot), which more than complied with this condition.
Mr Elbers’ pay ratio – i.e. his annual total remuneration compared to the average annual remuneration of a KLM employee – amounted to 8.1 in 2021, compared to 11.7 in 2019.
You can read the annual report here.