Philips 2007 Annual Report Download - page 111

Philips Annual Report 2007 117
The Supervisory Board also discussed the capital structure
of the Philips Group and approved the share repurchase
program announced in 2007 as well as the sale of part
of the Company’s shares in TSMC and LG.Philips LCD.
The Supervisory Board also evaluated opportunities
for acquisitions and partnerships and approved several
acquisitions, such as Color Kinetics, Genlyte and
Respironics.
Other discussion topics included:
nancial performance of the Philips Group and •
the divisions
status of merger and acquisition projects•
management agenda Board of Management•
remuneration policy•
management development and succession planning•
geographic performance and growth opportunities •
in Emerging Markets
the Philips Group’s annual budget 2008 and signicant •
capital expenditures
the situation at Philips Pension Fund in •
The Netherlands
the investigations into possible anticompetitive •
activities in the CRT industry.
Composition and remuneration of
the Supervisory Board
The Supervisory Board aims for an appropriate
combination of knowledge and experience among
its members in relation to the global and multi-product
character of the Company’s businesses. Consequently
the Supervisory Board aims for an appropriate level
of experience in marketing, technological, manufacturing,
nancial, economic, social and legal aspects of
international business and government and public
administration. The Supervisory Board further aims
to have available appropriate experience within Philips
by having one former Philips executive as a member.
Members are appointed for xed terms of four years and
may be re-appointed for two additional four-year terms.
The Supervisory Board currently consists of eleven
members, who are listed in the chapter Our leadership
that begins on page 112 of this Annual Report. At the
2007 General Meeting of Shareholders Messrs Hessels,
Van Lede and Thompson were re-appointed and Mr Von
Prondzynski was elected to the Supervisory Board. At
the 2008 General Meeting of Shareholders, the present
term of Messrs Van Miert and Kist will end. The
Supervisory Board very much welcomes the fact that
these gentlemen, who have brought valuable experience
and knowledge to our Board, are available for re-
appointment. We shall make a proposal to the 2008
General Meeting of Shareholders to re-appoint Messrs
Van Miert and Kist. Mr de Kleuver who joined the
Supervisory Board in 1998, and has been Chairman since
2005, has expressed his wish to relinquish his position as
a member of the Supervisory Board as from the closing
of the 2008 Annual General Meeting of Shareholders.
We wish to express our sincere appreciation for the way
Mr de Kleuver has guided the Supervisory Board as its
Chairman through the last three years and his valuable
contributions to the Company during his ten-year term
as a member of our Board. We wish him well for the
future. The Supervisory Board has appointed Mr Hessels
as its Chairman as from the closing of the 2008 Annual
General Meeting of Shareholders. Mr Kist will succeed
Mr Hessels as Chairman of the Audit Committee and
Mr von Prondzynski will become a member of the Audit
Committee as of the same date.
The remuneration of the members of the Supervisory
Board and the additional remuneration for its Chairman
and the members of its committees is determined by
the General Meeting of Shareholders. The current
fee structure for the Chairman and members of
the Supervisory Board is EUR 75,000 per year for
the Chairman and EUR 41,000 per year for members
of the Supervisory Board. The annual remuneration
for a regular member of a committee is EUR 4,500,
for the chairman of a committee EUR 6,000 and for
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements