Philips 2005 Annual Report Download - page 171

Philips Annual Report 2005 171
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Information on remuneration of the individual members of the
Board of Management and the Supervisory Board
Remuneration of the Board of Management
Remuneration and pension charges relating to the members of the Board
of Management amounted to EUR 6,363,218 (2004: EUR 6,364,709;
2003: EUR 4,937,572).
In 2005 an additional amount of EUR 431,001 (2004: EUR 492,740;
2003: EUR 551,691) was awarded in the form of other compensation.
When pension rights are granted to members of the Board of
Management, necessary payments (if insured) and all necessary
provisions are made (also for the self-administered pensions) in
accordance with the applicable accounting principles. In 2005, no
(additional)pensionbenetsweregrantedtoformermembers
of the Board of Management.
In 2005, the present members of the Board of Management were
granted 144,018 stock option rights (2004: 152,019 stock option
rights; 2003: 167,220 stock option rights) and 48,006 restricted share
rights (2004: 50,673 restricted share rights; 2003: 55,740 restricted
share rights).
At year-end 2005, the members of the Board of Management held
923,551 stock option rights (year-end 2004: 1,099,539; 2003: 1,133,360)
at a weighted average exercise price of EUR 28.33 (year-end 2004:
EUR 30.44; 2003: EUR 28.79).
The remuneration of the individual members of the Board of
Management was as follows:
in euros 2005
salary
annual
incentive1) total cash
other
compen-
sation2) 3)
G.J. Kleisterlee 1,020,000 1,028,160 2,048,160 278,716
J.H.M. Hommen4) 381,818 846,720 1,228,538 47,019
P-J. Sivignon5) 259,091 −259,091 14,318
G.H.A. Dutiné 511,000 509,040 1,020,040 68,895
A. Huijser 587,500 554,400 1,141,900 22,053
2,759,409 2,938,320 5,697,729 431,001
in euros 2004
salary
annual
incentive1) total cash
other
compen-
sation2) 3)
G.J. Kleisterlee 1,015,000 867,600 1,882,600 274,538
J.H.M. Hommen 835,000 711,432 1,546,432 109,272
G.H.A. Dutiné 505,000 438,138 943,138 58,750
A. Huijser 537,500 433,800 971,300 50,180
A.P.M. van der Poel6) −186,482 186,482 −
2,892,500 2,637,452 5,529,952 492,740
in euros 2003
salary
annual
incentive1) total cash
other
compen-
sation2) 3)
G.J. Kleisterlee 956,250 229,640 1,185,890 217,451
J.H.M. Hommen7) 786,250 187,213 973,463 244,835
G.H.A. Dutiné8) 503,750 158,000 661,750 66,694
A. Huijser8) 487,500 93,944 581,444 17,050
A.P.M. van der Poel9) 214,940 179,518 394,458 5,661
J.W. Whybrow10) −44,271 44,271 −
2,948,690 892,586 3,841,276 551,691
1) The annual incentives paid are related to the level of performance achieved in
the previous year.
2) The stated amounts concern (share of) allowances to members of the Board of
Management that can be considered as remuneration. In a situation where such a
share of an allowance can be considered as (indirect) remuneration (for example,
private use of the company car), then this share is both valued and accounted for
 here.ThemethodemployedbythescalauthoritiesintheNetherlandsisthe
starting point for the value stated.
3) As of 2003 gross costs of an apartment, provided by Philips, are included. As of
2004 gross costs of Philips products put at the disposal of members of the
Board of Management are included.
4) SalarygurerelatestoperiodJanuary-June15,2005.
5) SalarygurerelatestoperiodJune15-December31,2005.
6) AnnualIncentivegure2004relatestoperiodJanuary-April2003.
7) OthercompensationguresincluderelocationcostsofEUR155,631resulting
from contract of employment dated April 1997.
8) AnnualincentiveguresrelatetoperiodApril-December2002.
9) SalarygurerelatestoperiodJanuary-April2003.
10) Annualincentivegure2003relatestoperiodJanuary-March2002.
The tables below give an overview of the interests of the members of the Board of Management under the restricted share plans and the stock
options plans respectively of Royal Philips Electronics:
number of restricted share rights
potential premium shares as of Jan. 1, 2005 granted during 2005 delivered during 2005 as of Dec. 31, 2005
G.J. Kleisterlee 27,736 16,002 11,201 32,537 9,924
P-J. Sivignon −10,668 −10,668 2,136
G.H.A. Dutiné 18,492 10,668 7,468 21,692 6,621
A. Huijser 18,492 10,668 7,468 21,692 6,621
64,720 48,006 26,137 86,589 25,302
Seenote35tothenancialstatementsforfurtherinformationonstockoptions.
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