The renovation of the management floor of Austrian Airlines could cost the company a lot of money, because not even the termination agreement with the former Chief Commercial Officer Andreas Otto is dry, reports the Austrian daily “Der Standard”.
The company originally communicated that the manager had left the company at his own request. His contract would have run until 2022 and now it comes to light that the termination agreement is not yet signed. The standard writes that the supervisory board actually wanted to deal with this topic before Christmas, but that there were “problems” with the manager's claims. He is entitled to two annual salaries and the bonus for 2019. This makes Andreas Otto's “voluntary exit” an expensive matter for Austrian Airlines.
The bonuses for 2019 caused great astonishment in the summer of 2020, because shortly before the state aid was transferred, the “salary arrears” - according to the official communication - were paid out to management. It was only under considerable political and public pressure that the board agreed to the outside world that the approximately 500.000 euros would be foregone. However, there can be no question of a real waiver, because the money was only deferred so that the management team can insist on the payment at a later date. An example of this would be leaving the company and legally it will be tricky for the carrier: The variable salary components are contractually agreed and without a legally effective waiver by the recipient, the AUA will not avoid paying. Conversely, there is a bonus ban in the agreements with the Republic of Austria. Whether this also applies retrospectively is controversial. At least in the summer, politicians reacted with a huff to the subsequent bonus payment for 2019.
The daily Standard calculates that the early departure of Andreas Otto will cost “at least around 1,4 million euros”. According to the medium, this results from the fact that he is entitled to around 167.000 euros in bonuses and around 600.000 euros annually. Furthermore, the former AUA manager, who allegedly “left at his own request”, claims further variable salary components and these are still being wrestled over, according to the medium. The AUA says that Andreas Otto “will get what he is contractually entitled to”.
There is also criticism of the remodeling of the boardroom from the on-board works council. Chairman Rainer Stratberger, who is also a member of the supervisory board as a staff representative, says above the standard that there is “no professional reason” for the procedure. It would also be unjustified for Lufthansa not to renew board memberships for people over 60 years of age. The exchange of “well-trained managers in the middle of the crisis instead of using them for the new development of Austria as a business location” is “counterproductive”.