Federal government rejects bonus plans by Lufthansa

Created: 12/21/2022, 2:15 p.m

A blue and white flag of the airline Lufthansa flutters in the wind at Frankfurt Airport.

© Andreas Arnold/dpa

During the corona pandemic, the state saved the airline from bankruptcy.

Will there now be bonus payments for top management for 2021 and 2022?

Berlin – The federal government is rejecting Lufthansa’s plans to pay bonuses to its board members despite government aid worth billions during the pandemic.

"The federal government expressly sees it differently," said government spokesman Steffen Hebestreit on Wednesday.

"In their understanding, the accumulation of bonus payments in connection with a later payment after the end of the stabilization measures that existed in the WSF would violate the agreements made." This will be discussed with Lufthansa.

"Interesting legal questions have to be clarified".

Aid paid back in full

The collapse of air traffic in the pandemic had plunged Lufthansa deep into the red in 2020 and 2021.

In the summer of 2020, the state saved society from economic collapse.

The Federal Economic Stabilization Fund (WSF) supported Lufthansa with six billion euros.

In the course of this, he joined the group directly with 20 percent.

The state development bank KfW also contributed a loan of EUR 1 billion.

Lufthansa has since repaid the aid in full.

The federal government sold its stake with a profit of more than 700 million euros.

According to the "Handelsblatt", the supervisory board decided at the beginning of December to grant top management bonus payments for 2021 and 2022.

A Lufthansa spokesman explained that internal discussions in the supervisory board are not commented on.

"The remuneration for the board of directors, which is currently under public discussion, will be paid out at the earliest from 2025, depending on various factors." It is about a long-term bonus.

The Supervisory Board observes applicable law in all decisions regarding management remuneration.

dpa