The CEO of IAG, Luis Gallego, has waived the bonus that the company reserved for him from last year, so that he will voluntarily stop receiving some 900,000 pounds sterling (about

1.07 million euros

).

The first executive of the airline holding company informed the board of directors that he did not want to be taken into account for the 2021 Annual Incentive Plan, with which he will voluntarily stop receiving some 900,000 pounds sterling, according to company sources explained to

Europa Press

.

This decision by Gallego is due to his desire to keep his interests aligned with the situation of the company, which expects to start a strong recovery in the coming months after two years affected by the coronavirus crisis and restrictions on international mobility.

The crisis caused by the pandemic caused the group

to lose 2,933 million euros

last year , in line with the rest of the industry.

The aeronautical holding company is confident of a solid summer returning to operating approximately 85% of its capacity and a positive operating result this year.

"This request reflected its desire to keep its interests aligned with those of the group's stakeholders, many of whom have continued to suffer the impact of the prolongation of the pandemic in 2021," states the directors' annual remuneration report.

The board of directors accepted the IAG CEO's request and expressed its gratitude for his continued commitment to the group.

The board also acknowledges that this is the

second year in which the CEO has not received any annual or long-term incentives

.

Added to this are the reductions in his fixed salary in the same period of performance.

"Irrespective of any decision on the remuneration of the CEO of IAG, the board of directors has evaluated his performance in 2021 considering that he has been exceptional in managing the pandemic, in driving the transformation of the group and in leading the path towards sustainable aviation," says the report, adding that its performance has been evaluated taking into account "extremely uncertain and difficult" external conditions.

DEFENSE OF INTERESTS

The CEO of IAG has always made decisions in his remuneration policy aligned with his business and strategic priorities and taking into account the evolution of the sector in recent years, according to the sources consulted by

Europa Press

.

In 2013, at Iberia, Gallego already gave up a bonus of approximately 600,000 euros and had a

voluntary salary reduction of 15%

.

At that time, the airline was drastically reducing its workforce and negotiating agreements with adjustments with various groups.

On January 9, 2020, he was appointed to replace Willie Walsh as CEO of IAG, but following Walsh's decision to postpone his departure to help the company during the Covid-19 pandemic crisis, his appointment was postponed until September 8, 2020.

The same sources pointed out that in 2020, during his time at Iberia,

he had a 50% voluntary salary reduction

, in addition to accepting the role of CEO of the group at IAG with a lower salary than his predecessor.

Upon arrival at IAG, he continued with the 20% reduction that had been established for advice and in 2021 he maintained a voluntary reduction of 10%.

Gallego obtained in 2021 a total remuneration as CEO of IAG of 1.52 million euros, as reflected in the annual report on directors' remuneration.

Of the total remuneration, 1.28 million correspond to the salary in cash and the other 221,000 euros are related to financial instruments or the gross profit of the shares.

Subtract 13,000 euros more for other concepts.

The figure represents a significant change compared to 2020, given that Gallego only served as CEO from September 8 of that year, when he replaced Willie Walsh.

In those three months, Gallego received a remuneration of 470,000 euros.

EXPATRIATE EXECUTIVE

The board of directors has established a payment of 500,000 gross pounds, about 596,000 euros (250,000 pounds net of taxes, about 297,800 euros) that will be distributed between 2022 and 2023

for his status as an expatriate executive in the United Kingdom

.

From IAG it is argued that this remuneration of about 125,000 net pounds (about 148,868 euros) to be paid for two years, common in large companies, tries to cover installation and living expenses in the United Kingdom, such as the children's school, rent of housing, the difference in the cost of living, as well as other concepts.

Gallego moved from Madrid to London last year with two school-age children.

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