Scandal erupting over bonuses paid to officials amid job cuts
The Finnish government says that six out of the eight board members at Finnair will be replaced because of what it calls a lack of openness in executives’ benefits. A scandal has erupted over bonuses being paid to the airline’s senior officials at a time when severe job cuts were being made during and in the wake of the global financial crisis. Police have also started an investigation into real estate deals involving the CEO Mika Vehvilainen.
“I think the credibility of the company has been damaged,” Heidi Hautala, Finland’s minister responsible for state-owned companies, said. “So now the only chance for me is to take very drastic measures and renew most of Finnair’s board.” Finnair, which is 55.8% state-owned, has accepted the move.
[image courtesy oneworld]