New Air France-KLM CEO Pledges to Invest Half of His Salary Into Company Shares
Since taking the helm at Air France-KLM, the group's new Canadian boss said on Monday that he plans on investing half of his salary back into the company. Benjamin Smith, who came to Air France-KLM from his COO role at Air Canada, said he'd invest part of his salary as a gauge of "confidence" in returning the group to success.
Smith has a base salary of 900,000 euros ($1 million), but he can earn as much as 4.25 million euros if performance targets are met.
"I have already made a personal investment by moving with my family to France," Smith said in a video message to staff. "Today I have decided to make another investment by investing half my fixed salary in Air France-KLM's share capital."
Smith is pledging half of his fixed salary, meaning 450,000 euros (~$525,000).
"It's a way of demonstrating my confidence in our future success," Smith added. "I'm investing because I believe we can win in our market and become number one, but I also want to show my commitment."
Smith's appointment as CEO of the joint group comes at a tough point financially. In the first half of the year, 12 days of strikes resulted in 335 million euros in losses. The series of employee strikes, which caused Smith's predecessor Jean-Marc Janaillac's resignation, are at the forefront of issues that Smith is faced with combatting.
According to people familiar with the matter, Smith spent his first day on the job by meeting staff at the company's headquarters and at its Paris (CDG) hub. In addition, Smith took the first step in softening the relationship by meeting with unions, including the pilots' union.
"We operate in a fiercely competitive global marketplace," Smith said in the video to employees. "We need to act, we need to adapt, and we need to be prepared for both, but remember that I'm not here to do this on the backs of any of you."
Smith, who has been credited with helping Air Canada expand its international reach to more than 200 destinations, also has previous negotiation experience with pilot and flight attendant unions, which led to long-term labor deals.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.