A CFO loosens up

It is perhaps rather appropriate that chief financial officers (CFO) are generally pretty somber chaps. I mean who wants a bean-counter that's cracking the funnies when there's the fuel hedging programme or the latest yield figures to discuss?
So, the assembled German media (plus the odd interloper from the airline press corps) were initially baffled and then pleased to hear the personal observations of Dr Karl-Ludwig Kley (seen left at the press conference with Wolfgang Mayrhuber), CFO of Frankfurt-based Deutsche Lufthansa AG, at the aviation giant's annual press conference on Thursday 23 March. The normally dour Kley (although I am told he has a wicked sense of humour when off-duty) allowed himself this liberty as, after all, he is leaving. "I have mixed feelings standing here," he said wistfully, addressing the packed house of reporters. "A little bit of me will remain here at Lufthansa."

He didn't elaborate which bit, but certainly not his ambition, which is hopefully going to be satisfied with the deputy chief executive's job (and perhaps later the top job) at German pharmaceutical conglomerate Merck.
"Lufthansa is a fantastic company, it has fantastic products…and a management team that is the envy of others," grinned Kley, who has been with the carrier over eight years. That team has stuck it out through thick and thin. "The executive board has always held together and never had any disagreements on strategic matters," he said. What never? Come on.
But being the CFO of Lufthansa is naturally a 24-hour job. "I can't remember any day when I was able to sit back and relax - in particular the past 12 months has been very challenging." As I consult the 141-page annual the small matter of a pay check for Euro 475,000 ($570,000) and last year's bonus of Euro 385,500 is his not ungenerous yearly compensation for all this hard work.
Kley, who is being replaced as CFO by insider and rising star Stephan Gemkow (latterly of Lufthansa Cargo's executive board and seen below), says the company has "reached new heights and will continue to climb".

Somewhat needlessly he added: "I will remain a customer of yours," with a nod to his soon-to-be-former boss and executive board chairman Wolfgang Mayrhuber. Well that was nice to hear, and I imagine Merck has a nice juicy corporate deal with Lufthansa too so that Kley can still enjoy plenty of upgrades to first class.
Mayrhuber was taking this all very well. I mean who likes their CFO to hand in his cards just a few weeks before the main financial event in the calendar? But Mr Mayrhuber is nothing if not an absolute gentleman and a professional. "Dr Kley was a very spontaneous and imaginative colleague…we could rely on him…and his work has always been excellent," he said, paying tribute to his outgoing finance guru.
Now, what else? Oh yes, a little about that work. In 2005, Lufthansa Group revenue rose by 6.5%, operating profits grew by 50.7% and net profits climbed by 12.1%. But that's another story.