KLM CEO takes 20% salary cut until end of 2020

“The corona disaster is obtaining unparalleled affect on KLM.”

At the once-a-year normal meeting of shareholders of KLM Royal Dutch Airways, Pieter Elbers, the airline’s president & CEO, informed shareholders that he will just take a 20% wage slice for the remainder of the year.

“The corona disaster is obtaining unparalleled affect on KLM. No just one could ever have foreseen the present-day situation, with developments presenting them selves at a swift rate in modern weeks. It is now very clear that the affect of this disaster is not only enormous, but will go on for some time. This will need larger concentration on costs and further endeavours from anyone. Right now I informed the Supervisory Board and the once-a-year normal meeting of shareholders that I will just take a 20% slice in fixed wage right until the conclude of the year. I am self-confident that KLM will climate this storm and I am very pleased of the flexibility and determination of the total KLM workforce underneath these tricky situation. I am also grateful for the loyalty we are still observing from our prospects and for the support staying supplied to companies by the Dutch government. With each other, we will go on concentrating on retaining as quite a few employment as doable for KLM employees and on utilising our route network optimally in the pursuits of broader Dutch modern society.” Pieter Elbers – KLM President & CEO

KLM beforehand decided and announced the subsequent in reaction to the corona disaster: the fixed salaries of the Board of Managing Directors will not be greater in 2020, spend-out of variable remuneration for 2019 has been postponed, and board customers have waived their suitable to variable remuneration for 2020. On top of that, the beforehand proposed amendment of long term govt remuneration coverage, at first scheduled for discussion at today’s shareholder meeting, was scrapped from the agenda.

“The Supervisory Board is grateful for the excellent method in which the KLM administration has teamed up with all KLM employees to deal with this unparalleled disaster. We also recognize Pieter’s initiative to just take a slice in his fixed wage. Beforehand, the KLM Supervisory Board and Board of Managing Directors agreed to waive their suitable to variable remuneration and wage improves in 2020. The proposal to amend long term remuneration coverage ought to not have been placed on the agenda.” Cees ’t Hart, chairman of the KLM Supervisory Board

Appointments to the KLM Supervisory Board

The shareholders right now voted in favour of appointing Christian Nibourel to the KLM Supervisory Board. Mr Nibourel is now chairman of the consultancy OneUp. He was beforehand CEO of Accenture for the Benelux and France. He succeeds Philippe Calavia, who will move down just after 8 decades 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 expression on the KLM Supervisory Board.

Allocation of results

In the course of the meeting, the allocation of results was also discussed. Of the EUR 449 million in web earnings gained in 2019, EUR 429 million will be included to the KLM reserves. A sum of EUR 20.six million will be paid out to the holders of normal 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.

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