AF-KLM shareholders rebel against Gourgeon bonus
Published: June 2, 2012
Air France-KLM (AF-KLM) shareholders have refused overwhelmingly to validate the €400,000 ($ 495,256) bonus paid to Pierre-Henri Gourgeon, former CEO of AF-KLM ( ATW Daily News, June 1 ).
In total, 78.8% of shareholders voted against, 19.44% voted in favor and 1.76% abstained.
The outcome was not wholly unexpected. CEO Jean-Cyril Spinetta said that “in view of the vote of the state and the votes by mail already received, it is very likely that [the] resolution … is dismissed.” He said the vote was essentially a technicality in line with legal requirements.
Before the meeting, finance minister Pierre Moscovici called on Gourgeon to repay the money on “moral” grounds, according to French media reports.
They also suggest the shareholder vote will have no impact on the former CEO, who received the bonus in addition to a reported €1.125 million severance payoff when he was ousted from the financially troubled carrier in October last year.
President Francois Hollande said the new government is targeting a limit on senior executive pay equivalent to 20 times that of their lowest-paid employee.