Philips 2007 Annual Report Download - page 116

Philips Annual Report 2007122
Long-Term Incentive Plan 20051)2)
stock options
restricted share
rights
G.J. Kleisterlee 48,006 16,002
P-J. Sivignon 32,004 10,668
G.H.A. Dutiné 32,004 10,668
1) Reference date for board membership is December 31, 2007
2) Long-Term Incentive Multiplier of 1.0 applied
For more details of the LTIP, see note 33.
According to Philips’ Rules of Conduct with respect
to inside information, members of the Board of
Management (and the other members of the Group
Management Committee) are only allowed to trade in
Philips securities (including the exercise of stock options)
during ‘windows’ of ten business days following the
publication of annual and quarterly results (provided
the person involved has no ‘inside information’ regarding
Philips at that time) unless an exemption is available.
To further align the interests of the members of the
Board of Management and shareholders, restricted
shares granted to the Board of Management members
shall be retained for a period of at least ve years or
until at least the end of their employment, if this period
is shorter. Similarly for other Philips Senior Executives
compulsory share ownership was introduced in 2004.
Total cash pay-out
The total cash pay-out in any year is the sum of
the base salary received in the year concerned and
the bonus pay-out related to the previous year.
The total cash pay-out in 2007 (and in previous two
years) for each member of the Board of Management
is presented in the next table.
Total cash pay-out1)
in euros
2005 2006 2007
G.J. Kleisterlee 2,048,160 2,543,0603) 2,274,118
P-J. Sivignon 259,0912) 1,087,9413) 1,146,050
G.H.A. Dutiné 1,020,040 974,748 1,101,191
T.W.H.P. van Deursen −4) 412,5005) 967,690
R.S. Provoost −4) 393,7505) 898,051
A. Ragnetti −4) 356,2505) 886,144
S.H. Rusckowski −6) −6) 431,2507)
1) Reference date for board membership is December 31, 2007
2) Related to period June 15 - December 31, 2005
3) Including a special payment for the sale of the Semiconductors division
4) Before date of appointment as member of the Board of Management
(April 1, 2006)
5) Related to period April 1 - December 31, 2006
6) Before date of appointment as member of the Board of Management
(April 1, 2007)
7) Related to period April 1 - December 31, 2007
Percentage variable remuneration
The variable performance-based reward part
of the members of the Board of Management is
presented in the table below.
Variable remuneration as % of total remuneration1)2)
2005 2006 2007
G.J. Kleisterlee 62.1% 65.7% 70.2%
P-J. Sivignon − 58.4% 67.2%
G.H.A. Dutiné 64.8% 64.0% 68.0%
T.W.H.P. van Deursen − −3) 65.5%
R.S. Provoost − −3) 65.6%
A. Ragnetti − −3) 67.2%
S.H. Rusckowski − − −3)
1) Reference date for board membership is December 31, 2007
2) Restricted shares based upon actual grant price and stock options based upon
Black-Scholes value of the actual grant price in a particular year (see note 33
share-based compensation)
3)
Due to incomplete year as member of the Board of Management, no variable
remuneration related to Board of Management period is mentioned
8 Financial highlights 10 Message from the President 16 The Philips Group 62 The Philips sectors