Philips 2007 Annual Report Download - page 175

Philips Annual Report 2007 181
restricted share rights. This cost is expected to be recognized over a weighted-average period of 1.1 years.
In November 2005, the Company acquired a controlling interest in Lumileds (refer to note 2). Lumileds had an existing
stock option plan that provided for the granting of options to purchase depository receipts, representing benecial
In December 2006, the Company offered to exchange outstanding Lumileds Depository Receipts and options for
to share-based instruments, will uctuate based upon changes in the fair value of Lumileds. Substantially all of the
2007, the Company paid EUR 54 million as a part of the settlement of the liability. Additionally, an expense of EUR 6
million was recognized to reect an adjustment to the value of the liability. The balance at December 31, 2007
(2006: EUR 9,090,403; 2005: EUR 6,363,218). In 2007, an additional amount of EUR 739,861 (2006: EUR 645,123, 2005:
the applicable accounting principles. In 2007, no (additional) pension benets were granted to former members of
In 2007, the present members of the Board of Management were granted 318,132 stock options (2006: 198,027 stock
options; 2005: 144,018 stock options) and 106,044 restricted share rights (2006: 66,009 restricted share rights; 2005:
At year-end 2007, the members of the Board of Management held 1,771,097 stock options (year-end 2006: 1,355,765;
2005: 923,551) at a weighted average exercise price of EUR 28.05 (year-end 2006: EUR 27.70; 2005: EUR 28.33).
34
Remuneration of individual members of the Board of Management
in euros
salary annual incentive1) special payment2) total cash other compensation3)
2007
G.J. Kleisterlee 1,087,500 1,186,618 − 2,274,118 304,047
P-J. Sivignon 637,500 508,550 − 1,146,050 25,218
G.H.A. Dutiné 587,500 513,691 − 1,101,191 140,116
A. Huijser4) − 140,098 − 140,098 −
T.W.H.P. van Deursen 587,500 380,190 − 967,690 73,701
J.A. Karvinen5) − 382,579 − 382,579 −
R.S. Provoost 562,500 335,551 − 898,051 22,007
A. Ragnetti 531,250 354,893 − 886,143 37,031
S.H. Rusckowski6) 431,250 − − 431,250 137,741
4,425,000 3,802,170 − 8,227,170 739,861
2006
G.J. Kleisterlee 1,042,500 1,150,560 350,000 2,543,060 300,064
J.H.M. Hommen7) − 323,018 − 323,018 −
P-J. Sivignon8) 568,750 219,191 300,000 1,087,941 60,671
G.H.A. Dutiné 540,750 433,998 − 974,748 99,373
A. Huijser9) 150,000 507,600 − 657,600 6,835
T.W.H.P. van Deursen10) 412,500 − − 412,500 28,265
F.A. van Houten11) 262,500 − 400,000 1,174,37512) 21,602
J.A. Karvinen13) 400,000 − − 400,000 79,710
R.S. Provoost14) 393,750 − − 393,750 34,632
A. Ragnetti15) 356,250 − − 356,250 13,971
4,127,000 2,634,367 1,050,000 8,323,242 645,123
2005
G.J. Kleisterlee 1,020,000 1,028,160 − 2,048,160 278,716
J.H.M. Hommen16) 381,818 846,720 − 1,228,538 47,019
P-J. Sivignon17) 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
1) The annual incentives paid are related to the level of performance achieved in the previous year
2) Relating to the divestment of the Semiconductors division
3) 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 the share is both valued and accounted for here. The method employed by the scal authorities
in the Netherlands is the starting point value stated.
4) Annual Incentive gure relates to period January 1 - March 31, 2006.
5) Annual Incentive gure relates to period April 1 - November 30, 2006.
6) The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - December 31, 2007.
The annual incentive paid out relates to the period before board membership and is not stated.
7) Annual incentive amount relates to period January 1 - June 15, 2005
8) Annual incentive amount relates to period June 15 - December 31, 2005
9) The salary amount relates to the period January 1 - March 31, 2006
10) The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - December 31, 2006.
The annual incentive paid out relates to the period before board membership and therefore is not stated.
11) The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - September 29, 2006
12) The total cash amount includes the salary over the period April 1 - September 29, 2006, the special Semiconductors payment,
the annual incentive of EUR 354,375 over the period April 1 - September 29, 2006 and pursuant to the Semiconductors transaction
retention scheme an amount of EUR 157,500.
13) The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - November 30, 2006.
The annual incentive paid out relates to the period before board membership and therefore is not stated.
14) The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - December 31, 2006.
The annual incentive paid out relates to the period before board membership and therefore is not stated.
15) The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - December 31, 2006.
The annual incentive paid out relates to the period before board membership and therefore is not stated.
16) Salary gure relates to period January 1 - June 15, 2005
17) Salary gure relates to period June 15 - December 31, 2005
Group nancial statements
Notes to the group nancial statements
Company nancial statements 250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information