IAG, the British-Spanish multinational holding company that owns Iberia and British Airways, has been paying Antonio Sánchez-Lozano 52,667 euros per month since October to look for another job. The payments will continue through January, February and March provided that Iberia has proof that Sánchez-Lozano is actively seeking employment.
This amount piles atop other money that the ex-CEO has received as part of his lavish severance package. The companies are free to set whatever severance packages they think are justified as long as shareholders do not disagree. That is no reason to allow this kind of excess, especially when the payment structure is manipulated to make the severance look like a salary. Forgetting the insane amount, which the company and its managers decided, more transparency is critical. It is worth mentioning that the Finance Ministry is paying for half of the severance, which exceeds legal limitations. If severance packages like this masquerade as real salaries then recipients should pay personal income tax and appropriate deductions, which can lower overall tax bills.
Iberia and Sánchez-Lozano ought to show some social and corporate responsibility by meeting their tax obligations without trying to game the system. There is no excuse for the company's habitual abuse, especially for a company that is not making money.
