TAP: Alexandra Reis has to return 450.110 euros of compensation, Government dismisses chairman of the CA and CEO

Government exonerated the chairman of the Board of Directors and the executive chairman of TAP and has already announced a new name to occupy both positions simultaneously

Alexandra Reis will have to return a total of 450.110,26 euros of the compensation paid to her by TAP, according to the audit report by the General Inspectorate of Finance (IGF), released today.

For the IGF, regardless of whether Alexandra Reis left due to “report or resignation for mere convenience”, she “will have to return to TAP the amounts she received following the termination of her duties as Director, which amount to 443.500 euros, to which must be added , at least 6.610,26 euros, corresponding to benefits in kind”.

The IGF safeguards, however, that the former TAP administrator “will be entitled to the allowance for vacation days not taken in that capacity”.

The IGF decreed the nullity of the compensation payment agreement of 500 thousand euros to Alexandra Reis, but excludes from this amount the February remuneration and the part related to compensation for the end of the employment contract.

“The Agreement for the termination of contractual relations concluded between TAP, SA and Eng.ª Alexandra Reis, involving a global compensation of 500 000 euros, is void except in the parts relating to the termination of the individual employment contract and the respective compensation (56.500 euros)”, says the report.

The IGF also considers due “the payment of the remuneration for the month of February 2022 (17 euros)”.

The IGF analysis states that the Public Manager Statute (EGP) “does not provide for the existence of the figure formally used for the termination of functions of the administrator, that is, the 'resignation by agreement'”, further emphasizing that the resignation contained in the EGP “does not confer the right to any financial compensation”, which means that the amount earned is “without legal basis”.

“Even in the case of configuration of the termination of functions as an act of dismissal for mere convenience, such act would have been practiced by an incompetent entity, insofar as this would require a shareholder resolution, in AG [general meeting] or through DUE [ Unanimous social deliberation in writing]”, says the document.

In addition, concludes the IGF, even if the departure of Alexandra Reis from the Board of TAP had been a resignation for mere convenience, “there would be no right to compensation”, due to the fact that the director in question did not meet the “required time requirement of 12 months of exercise of functions” in the respective term of office.

The IGF audit aimed to ascertain the facts related to the termination of duties of Alexandra Reis at TAP and to assess the respective legal compliance and financial regularity.

In the sights of the IGF inspectors are the events that occurred in the months of January and February, that is, when the acts related to the termination of functions of Alexandra Reis were recorded.

Chairman of the Board of Directors and CEO of TAP exonerated

Meanwhile, the Government dismissed today the chairman of the Board of Directors and the executive chairman of TAP, Manuel Beja and Christine Ourmières-Widener, following the IGF report on the departure of Alexandra Reis from the company, announced the Minister of Finance.

Fernando Medina, who spoke today in Lisbon, at a joint press conference with the Minister of Infrastructure João Galamba, also said that “no compensation will be paid” to outgoing administrators.

João Galamba said that the entire TAP Executive Committee currently in office will not leave.

To replace the two exonerated TAP directors, the Government chose Luís Silva Rodrigues, who currently leads Sata, to assume the positions of chairman of the Board of Directors and Executive Committee of TAP, announced the Minister of Infrastructure.

At the press conference, the Minister of Finance defended that the Government adopted the necessary decisions for the proper functioning of TAP and for a “turn of the page”, within the scope of the process that involved Alexandra Reis.

“The Government takes the decisions it deems necessary for the proper functioning of TAP and for a turning of the page. TAP suffered from this episode not only as a matter of legality”, pointed out Fernando Medina, at the joint press conference.