The 2.8 million euro severance package that IAG is considering for company CEO Antonio Vázquez has caused an outcry among its shareholders. The amount is not the big issue. What they don't like is that the severance violates Spanish law.
This factor has drawn more criticism than any other, and as a result IAG has avoided saying that Vázquez's severance package was decided before Iberia merged with British Airways. IAG's corporate governance rules say: "this is not part of the company's policy." Just as Vázquez cut his salary in half between 2011 and 2013, he should align his severance pay with the company's policy. If IAG leaders ask their employees to make sacrifices, they should lead by example.
