Philips 2009 Annual Report Download - page 140

In 2009, members of the Board of Management were
granted 259,200 stock options and 69,132 restricted
share rights under the LTIP (excluding 20% premium
shares deferred for a three-year holding period).
For more details of the LTIP, see note 30.
9.3.8 Pensions
Eligible members of the Board of Management participate
in the Executives Pension Plan in the Netherlands
consisting of a combination of a defined-benefit (career
average) and defined-contribution plan. The target
retirement age under the plan is 62.5. The plan does not
require employee contributions.
9.3.9 Additional arrangements
In addition to the main conditions of employment, a
number of additional arrangements apply to members of
the Board of Management. These additional
arrangements, such as expense and relocation allowances,
medical insurance, accident insurance and company car
arrangements are broadly in line with those for Philips
executives in the Netherlands. In the event of
disablement, members of the Board of Management are
entitled to benefits in line with those for other Philips
executives in the Netherlands.
In line with regulatory requirements, the Company’s
policy forbids personal loans to members of the Board of
Management and Supervisory Board or to the other
members of the Group Management Committee, and
consequently no loans were granted to such members in
2009, nor were such loans outstanding as of December
31, 2009.
Unless the law provides otherwise, the members of the
Board of Management and of the Supervisory Board shall
be reimbursed by the Company for various costs and
expenses, like reasonable costs of defending claims, as
formalized in the articles of association. Under certain
circumstances, described in the articles of association,
such as an act or failure to act by a member of the Board of
Management or a member of the Supervisory Board that
can be characterized as intentional (“opzettelijk”),
intentionally reckless (“bewust roekeloos”) or seriously
culpable (“ernstig verwijtbaar”), there will be no
entitlement to this reimbursement. The Company has
also taken out liability insurance (D&O - Directors &
Officers) for the persons concerned.
9.3.10 Remuneration Supervisory Board
The table below gives an overview of the remuneration
structure which remained unchanged since 2008.
Remuneration 20091)
in euros per year
Chairman Member
Supervisory Board 110,000 65,000
Audit Committee 15,000 10,000
Remuneration Committee 12,500 8,000
Corporate Governance and
Nomination & Selection
Committee 12,500 6,000
Fee for intercontinental traveling
per trip 3,000 3,000
1) Details are disclosed in note 31
9.3.11 2010
The Remuneration Committee continues to monitor
trends and changes in the market. It keeps a watching brief
on the continuing alignment between Philips’ strategic
objectives and the remuneration policy for the Board of
Management.
9 Supervisory Board report 9.3.7 - 9.3.11
140 Philips Annual Report 2009