TAP bonuses of €1.17M to 180 staff are 'breach of trust'

By TPN/Lusa, in News · 10-06-2019 17:00:00 · 2 Comments
TAP bonuses of €1.17M to 180 staff are 'breach of trust'

Portugal’s government said that a move by executives at TAP airline, to pay bonuses totaling €1.171 million to 180 employees "constitutes a breach of the relationship of trust between” the board and the company’s largest shareholder

In a statement, the Ministry of Infrastructure said that "it disagrees with the policy of awarding bonuses, in a year of losses, to a restricted group of workers and without the TAP Administrative Board [on which the state is represented] having been informed in advance of the awarding of bonuses and of the criteria underlying their awarding.”

The ministry said that it was also displeased at "the conduct of the Executive Board, which acted in disregard of the duties of institutional collaboration it bears."

According to the statement, “the Government and representatives of the State on the TAP Administrative Board learned of this decision, which has already been implemented with the processing of salaries for the month of May, through the media."

As a result, the ministry states, the decision "constitutes a breach of the relationship of trust between the Executive Committee and TAP’s largest shareholder.”

The government also indicated that it had called an "urgent … meeting of the Administrative Board to clarify the entire process and analyse the duty of information to which [TAP executives] are obliged under the terms of the shareholder agreement and … of legislation in force."

TAP last year had a net loss of €118 million, following a profit of €21.1 million in 2017, but its CEO, Antonoaldo Neves, has said that the loss would have been higher if major restructuring measures had not been undertaken.


Comments:

Once again this is based on jealousy that some people are getting paid more than you. These bonuses average only Eur6, 500 for each of the 180 people concerned, which is really paltry, so I'm wondering if the total amount paid shouldn't be just over a billion euros, instead of a million. Is a Eur6, 500 bonus paid for a full year's service really anything to write home about?

In my last job I was paid a Eur13, 000 bonus and thought that this was a pittance. I wasn't even a high-flying executive either.

by Fred Hunt from Lisbon on 10-06-2019 10:02:00

Completely agree! They should not get bonuses! They should be appraised and if they haven’t achieved their targets, get sacked!

by Anna from Madeira on 10-06-2019 09:46:00
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