Philips 2011 Annual Report Download - page 165

12 Group financial statements 12.11 - 12.11 31 32
Annual Report 2011 165
offer. The amount of the share-based payment liability, which is
denominated in US dollars, recorded at December 31, 2010 was EUR
38.1 million. During 2011, the Company paid EUR 32.1 million as a part
of the settlement of the liability. Additionally, a decrease of EUR 3.3
million was recognized to reflect an adjustment to the value of the
liability. The balance at December 31, 2011 amounted to EUR 2.7
million, which will be settled in 2012.
31 Related-party transactions
In the normal course of business, Philips purchases and sells goods and
services from/to various related parties in which Philips typically holds a
50% or less equity interest and has significant influence. These
transactions are generally conducted with terms comparable to
transactions with third parties.
2009 2010 2011
Sales of goods and services1) 249 240 278
Purchases of goods and services 424 229 117
Receivables from related parties 14 20 19
Payables to related parties 95 5 6
1) Revised to reflect an adjusted related party allocation
During 2011, we considered the members of the Board of Management
and the Supervisory Board to be the key management personnel as
defined in IAS 24 “Related parties”. For remuneration details of the
members of the Board of Management and the Supervisory Board see
note 32, Information on remuneration.
For employee benefit plans see note 29, Pensions and other
postretirement benefits.
In 2010, Philips sold its entire stake in NXP to Philips Pension Trustees
Limited. For further details of this related party transaction see note 12,
Other non-current financial assets.
32 Information on remuneration
Remuneration of the Board of Management
In 2011, the total remuneration costs relating to the members of the
Board of Management amounted to EUR 10,844,833 (2010: EUR
12,174,279; 2009: EUR 12,222,191).
When pension rights are granted to members of the Board of
Management, necessary payments (if insured) and all necessary
provisions are made in accordance with the applicable accounting
principles. In 2011, no (additional) pension benefits were granted to
former members of the Board of Management.
Out of the total remuneration costs in 2011, an amount of EUR
3,311,748 relates to stock options and restricted share rights (2010:
EUR 3,242,191, 2009: EUR 3,465,778).
At December 31, 2011, the members of the Board of Management held
1,072,431 stock options (2010: 1,957,282; 2009: 2,064,872) at a
weighted average exercise price of EUR 23.01 (2010: EUR 24.94; 2009:
EUR 25.47).