The Boss of Air France-KLM Could Get up to 8.5 Million Euros in the Case of “Forced Departure”

Benjamin Smith, currently boss of Air France-KLM.

Benjamin Smith, the new boss of Air France-KLM, could get compensation of up to 8.5 million euros in case of “forced departure”. Details.

The new boss of Air France-KLM could get compensation of up to 8.5 million euros in case of “forced departure” , according to a document of the group consulted by AFP , confirming information Liberation broadcast Friday .

The disclosure of this information comes against a backdrop of persistent dissatisfaction among Air France employees who have been demanding salaries for months.

Golden parachute

Revealed mid-August, the remuneration of the new CEO of the Air France-KLM Group could reach a maximum of 4.25 million euros per year, more than triple that of its predecessor.

The remuneration document of Benjamin Smith, dated the 20th August and published on the Air France-KLM website, details the elements of remuneration and in particular the compensation in the event of forced departure.

“In certain cases of forced departure (notably in the event of dismissal, non-renewal of his office as Chief Executive Officer or forced resignation) “, the basis of Mr. Smith’s severance pay” is equivalent to two years of fixed compensation and annual variable.”

This severance pay will therefore be between 1.8 million euros – if Mr. Smith did not receive any variable amount – and 8.5 million euros, assuming the attribution of a variable amount. maximum.

Contacted by AFP, the Franco-Dutch group returned to its document of August 20.

The severance pay “will be subject to the approval of the next annual general meeting,” the group emphasizes in its document.

Benjamin Smith, number 2 of Air Canada until August 31, whose appointment has been hailed by the French government as “an opportunity” for the group, must take office by September 30.

His appointment came after more than three months of research of the ideal candidate to resume contact with social partners on the war foot, when the giant Franco-Dutch (nearly 100 million passengers carried in 2017 by a fleet of 537 aircraft ) faces stiff competition in all market segments.

15 days of strike in 2018

The airline Air France is going through a serious social crisis for several months, related to wage demands and marked by 15 days of strike between February and June which cost 335 million euros to the group.

At the end of August, the inter-union composed of pilot organizations (SNPL and Alter), hostesses and stewards (SNPNC, Unsa-PNC, CFTC, SNGAF) and ground staff (CGT, FO and SUD), was said to be ready for “a strong hardening of the conflict”.

But in the absence of interlocutor, the Air France-KLM group still waiting for the entry into office of Benjamin Smith, the Inter Friday showed his willingness to dialogue with management on the issue of a salary increase.

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