Philips 2007 Annual Report Download - page 114

Philips Annual Report 2007120
of the Supervisory Board. The (2007) nancial targets
(net income with a cash ow threshold and comparable
sales growth, based on US GAAP) are determined
upfront with measurable quantitative performance
criteria and will not be adjusted during the year.
The on-target Annual Incentive percentage is set
at 60% of the base salary for members of the Board
of Management and 80% of the base salary for the
President/CEO, and the maximum Annual Incentive
achievable is 90% of the annual base salary and for
the President/CEO 120% of the annual base salary.
In exceptional circumstances, the Remuneration
Committee may decide to increase this percentage
by 20% (resulting in an Annual Incentive percentage
of 108% for members and 144% for the President/CEO).
The Annual Incentive pay-out in any year relates
to the achievements of the preceding nancial year
in relation to agreed targets. As a result, Annual
Incentives paid in 2007 relate to the salary levels
and the performance in the year 2006. Similarly,
the Annual Incentive payable in 2008 will be calculated
on the basis of the 2007 annual results.
The Annual Incentive pay-out in 2007 and for
the previous two years is shown in the next tables.
Pay-out in 20071)
in euros
realized annual
incentive
as a % of base
salary (2006)
G.J. Kleisterlee 1,186,618 113.0%
P-J. Sivignon 508,550 84.8%
G.H.A. Dutiné 513,691 93.4%
T.W.H.P. van Deursen 380,190 92.2%2)
R.S. Provoost 335,551 85.2%2)
A. Ragnetti 354,894 99.6%2)
S.H. Rusckowski − −3)
1) Reference date for board membership is December 31, 2007
2) Pay-out related to period April 1 - December 31, 2006
3) No pay-out related to period of board membership
Pay-out in 20061)
in euros
realized annual
incentive
as a % of base
salary (2005)
G.J. Kleisterlee 1,150,560 112.8%
P-J. Sivignon 219,191 84.6%2)
G.H.A. Dutiné 433,998 84.6%
T.W.H.P. van Deursen − −3)
R.S. Provoost − −3)
A. Ragnetti − −3)
1) Reference date for board membership is December 31, 2007
2) Pay-out related to period June 15 - December 31, 2005
3) No pay-out related to period of board membership
Pay-out in 20051)
in euros
realized annual
incentive
as a % of base
salary (2004)
G.J. Kleisterlee 1,028,160 100.8%
P-J. Sivignon − −2)
G.H.A. Dutiné 509,040 100.8%
1) Reference date for board membership is December 31, 2007
2) No pay-out in 2005 since Mr Sivignon joined Philips on June 15, 2005
Based upon the 2007 results as published in this
Annual Report, the realized Annual Incentive amounts
mentioned in the table below will be paid to members
of the Board of Management in April 2008.
Pay-out in 20081)
in euros
realized annual
incentive
as a % of base
salary (2007)
G.J. Kleisterlee 490,512 44.6%
P-J. Sivignon 217,386 33.4%
G.H.A. Dutiné 200,664 33.4%
T.W.H.P. van Deursen 267,984 44.7%
R.S. Provoost 247,607 43.1%
A. Ragnetti 329,571 59.9%
S.H. Rusckowski 103,164 23.9%2)
1) Reference date for board membership is December 31, 2007
2) Pay-out related to period of board membership April 1 - December 31, 2007
8 Financial highlights 10 Message from the President 16 The Philips Group 62 The Philips sectors