Air France-KLM CEO to Forgo 2020 Bonus After Dutch Outcry (1)

The head of Air France-KLM will forgo a bonus this year after the Dutch government objected to the payout amid the coronavirus pandemic, potentially smoothing the way for a state-backed rescue of the airline.

Chief Executive Officer Ben Smith said Thursday that the commitment he announced last month to cut his compensation by 25% during the health crisis included forfeiting his short-term variable pay for the 2020 financial year. That bonus could have amounted to as much as 1.35 million euros ($1.46 million), according to the latest annual report.

The clarification came after Bloomberg reported that the Dutch state, Air ...