Ben Smith's expectations for ramping up operations
Apr 24, 20, 4:16 am
#61
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 14,562
Originally Posted by glennhaak
Well there was, as a bonus was tied to how Ben would lead AF-KL through the crisis with a direct link to the financial position of AF-KL and how much financial support he would be able to get from the French and Dutch governments, meaning that the more financial support he would be able to get, the higher his bonus would be.
.
.
Apr 24, 20, 2:18 pm
#63
Join Date: Feb 2004
Location: Netherlands
Posts: 3,925
Originally Posted by brunos
Sorry, but that sounds like the kind of fake news that agitate social networks.
To me in current situation, I believe as a good management team including the CEO, if your company is suffering from this, the first thing that should be done is lead by example and take a pay cut before firing your employees.. get rewarded only after you have managed to lead the company out of the crisis even as a smaller company.
Cheers!
Apr 24, 20, 3:18 pm
#64
FlyerTalk Evangelist
Join Date: Feb 2000
Location: London, UK and Southern France
Posts: 17,828
Originally Posted by nldogbert
This was certainly not fake news..
Apr 24, 20, 7:46 pm
#65
Join Date: Feb 2001
Location: NYC
Programs: Mileage Plus Life Platinum
Posts: 1,512
In a company video to staff today Ben Smith seemed very earnest with a tinge of excitement. Whether it was relief that he would still get a chance to bring Air France 'properly' on course after threading the 2-country fundraising together, just the relief, I'm not sure. Changes are on the way obviously but at least the executive team can now concentrate on strategy during very difficult times. He's very low key and humble, and/or very well trained in media savviness!
Apr 25, 20, 12:21 am
#66
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 14,562
Originally Posted by nldogbert
This was certainly not fake news.. due to this ridiculous condition attached, the Dutch govt was not ready to help in bailing the AFKLM out, it was the topic of the day in the news until late afternoon when he prepared to drop it. If I remember correctly, the French govt was OK with it, but not the Dutch govt.
To me in current situation, I believe as a good management team including the CEO, if your company is suffering from this, the first thing that should be done is lead by example and take a pay cut before firing your employees.. get rewarded only after you have managed to lead the company out of the crisis even as a smaller company.
Cheers!
To me in current situation, I believe as a good management team including the CEO, if your company is suffering from this, the first thing that should be done is lead by example and take a pay cut before firing your employees.. get rewarded only after you have managed to lead the company out of the crisis even as a smaller company.
Cheers!
He had already agreed to pay cuts.
The issue of Elbers still wished to receive his 2019 bonus is a completely different story.
Apr 25, 20, 2:14 am
#67
Join Date: Feb 2004
Location: Netherlands
Posts: 3,925
from what I can find back on this, "The move follows an outcry in the Netherlands over new performance criteria that appeared to reward the CEO for attracting state aid"
https://www.reuters.com/article/us-h...-idUSKCN2250Q5
https://www.reuters.com/article/us-h...-idUSKCN2250Q5
Apr 25, 20, 4:17 am
#68
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 14,562
Originally Posted by nldogbert
from what I can find back on this, "The move follows an outcry in the Netherlands over new performance criteria that appeared to reward the CEO for attracting state aid"
https://www.reuters.com/article/us-h...-idUSKCN2250Q5
https://www.reuters.com/article/us-h...-idUSKCN2250Q5
It's one thing to say that a CEO should not get a bonus, as due for the past year results, if the company requires State aid this year. It is another to claim, as above, that the CEO earns a bonus based on the amount of State aid the CEO is able to negotiate.
Last edited by brunos; Apr 25, 20 at 5:46 am
Apr 25, 20, 6:48 am
#69
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold; BA Rust
Posts: 26,841
Originally Posted by adambrau
In a company video to staff today Ben Smith seemed very earnest with a tinge of excitement. Whether it was relief that he would still get a chance to bring Air France 'properly' on course after threading the 2-country fundraising together, just the relief, I'm not sure. Changes are on the way obviously but at least the executive team can now concentrate on strategy during very difficult times. He's very low key and humble, and/or very well trained in media savviness!
Apr 25, 20, 5:55 pm
#71
Join Date: Sep 2014
Programs: Flying Blue Gold, Iberia Silver
Posts: 936
Originally Posted by hugolover
What a shame the opportunity wasn't taken by the Dutch for a quasi private/state buyback of KLM from AF-KL. Freeing them from the French incompetence at running an airline once and for all.
I feel Elbers has done a great job as KLM CEO but his airline has no doubt on balance benefitted from the merger with Air France and the markets this has opened up for an airline that serves a country of 17 million for one single airport.
Similiar to the Netherlands' relationship with the EU, KLM benefits from being part of something bigger. It makes sense to remain in solidarity with your allies and share the burden, not only from an emotional perspective but also a transactional one. Without a strong Air France KLM will get weak, and vice versa. They are stronger together. Now, more than ever.
Apr 26, 20, 6:59 am
#72
Join Date: Sep 2017
Location: AMS
Programs: Flying Blue Platinum | Flying Blue Petroleum | Hilton Gold | Marriott Gold | Shangri-La Jade
Posts: 304
Originally Posted by brunos
It is another to claim, as above, that the CEO earns a bonus based on the amount of State aid the CEO is able to negotiate.
Apr 26, 20, 9:00 am
#73
Join Date: Oct 2008
Posts: 9,906
Originally Posted by HalconBCN
I would like to remind you that KLM was running huge annual losses in the years before the merger with Air France so the idea that the Dutch are somehow naturally gifted at running airlines and the French are "incompetent" needs to be questioned.
I feel Elbers has done a great job as KLM CEO but his airline has no doubt on balance benefitted from the merger with Air France and the markets this has opened up for an airline that serves a country of 17 million for one single airport.
Similiar to the Netherlands' relationship with the EU, KLM benefits from being part of something bigger. It makes sense to remain in solidarity with your allies and share the burden, not only from an emotional perspective but also a transactional one. Without a strong Air France KLM will get weak, and vice versa. They are stronger together. Now, more than ever.
I feel Elbers has done a great job as KLM CEO but his airline has no doubt on balance benefitted from the merger with Air France and the markets this has opened up for an airline that serves a country of 17 million for one single airport.
Similiar to the Netherlands' relationship with the EU, KLM benefits from being part of something bigger. It makes sense to remain in solidarity with your allies and share the burden, not only from an emotional perspective but also a transactional one. Without a strong Air France KLM will get weak, and vice versa. They are stronger together. Now, more than ever.
They will burn thorough this cash very fast and the begging bowl will be out once more.
Apr 26, 20, 9:13 am
#74
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 14,562
Originally Posted by glennhaak
That indeed was one of the newly added terms for his bonus: "The move follows an outcry in the Netherlands over new performance criteria that appeared to reward the CEO for attracting state aid - prompting Dutch Finance minister Wopke Hoekstra to call publicly for his bonus to be scrapped."
Apr 27, 20, 12:52 pm
#75
Join Date: Oct 2008
Posts: 9,906
Originally Posted by hugolover
What a shame the opportunity wasn't taken by the Dutch for a quasi private/state buyback of KLM from AF-KL. Freeing them from the French incompetence at running an airline once and for all.
