Business

Outgoing Airbus CEO poised for $56m payout: Report

PARIS: The chief executive of European aerospace giant Airbus stands to receive a 37 million euro (S$56 million) severance package when he steps down next week, according to calculations by an investor advisory firm released on Tuesday.

The company acknowledged the "soundness" of the calculations made by Proxinvest, which were based on financial filings under German CEO Tom Enders.

Mr Enders, 60, will step down at the annual shareholder meeting in Amsterdam, where Airbus is based.

Shareholder advocates note that means Mr Enders's package will not be subject to a shareholder vote, as would be standard under French corporate guidelines which were tightened by France's employers' association last year.

According to Proxinvest, Mr Enders will receive a total of 26.3 million euros in retirement pay over the next 20 years, along with stock and performance bonuses valued at 7.3 million euros. He will also benefit from a one-year noncompete clause worth 3.2 million euros.

"That's a pretty costly noncompete clause, 12 months goes by fast," Proxinvest's director Loic Dessaint told AFP.

"If he wants to advise another company in a year and a half, he has the right," he said.

In all, Mr Enders' package would be worth 36.8 million euros. - AFP

BUSINESS & FINANCE