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Air France-KLM: the exit from the crisis boosts the remuneration of Benjamin Smith

2023-04-24T20:48:12.819Z


Boosted by a catch-up after the end of the constraints linked to Covid-19, the remuneration of the group's general manager will climb to five million euros for 2022.


Up to five million euros, five times more than in 2021: the CEO of Air France-KLM Benjamin Smith will see his compensation for 2022 boosted by a catch-up after the end of the constraints linked to Covid-19 , according to a document published Monday evening.

Complex, the remuneration of the manager includes in cash, a fixed salary and a variable part linked to the performance of the company, but also long-term elements, also conditioned on objectives but paid in shares.

According to the universal registration document of the Franco-Dutch group filed with the Autorité des marchés financiers prior to the general meeting of shareholders on June 7, Benjamin Smith's fixed salary remains unchanged for 2022, as since 2019: 900,000 euros .

This was the only part of his compensation actually received by the Chief Executive Officer for 2021, any other payment being prohibited until the company had reimbursed at least 75% of the aid granted by the State to enable him to overcome the consequences of the pandemic, one of the conditions laid down by the European Commission.

Read alsoAir France-KLM: a loan linked to sustainable development signed for 2.2 billion euros

However, these constraints have disappeared in recent weeks: Air France-KLM, which made a profit of 728 million euros in 2022 after cumulative losses of 10.4 billion in 2020 and 2021, has reimbursed all of this aid.

For 2022, Benjamin Smith will therefore receive 1,059,769 euros in variable compensation, calculated on the basis of financial, environmental and customer satisfaction criteria, if the June GM gives the green light.

But the manager will also receive a variable part for 2021, as had been ratified by the 2022 AGM. Frozen as long as the company was subject to Brussels conditions, this payment reached 1,089,984 euros.

In addition to these approximately 3 million euros in cash and 275,000 euros in benefits in kind (car with driver, housing allowance, etc.), the CEO will be awarded, for 2022, shares in his company of a value of 2 million euros at the current price.

This is the third part of his compensation, which he will actually receive

“in 2025 subject to the achievement of financial and extra-financial performance conditions and a three-year presence condition

”.

On the other hand, it is from this year that Benjamin Smith will obtain a portion of this long-term compensation for 2020, again in the form of shares, valued at 736,865 euros to date, according to his company.

Source: lefigaro

All business articles on 2023-04-24

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