Philips 2015 Annual Report Download - page 160

Group nancial statements 12.9 29
160 Annual Report 2015
The aggregate intrinsic value in the tables and text
above represents the total pre-tax intrinsic value (the
dierence between the Company’s closing share price
on the last trading day of 2015 and the exercise price,
multiplied by the number of in-the-money options)
that would have been received by the option holders if
the options had been exercised on December 31, 2015.
The following table summarizes information about the
Company’s Accelerate! options as of December 31, 2015
and changes during the year:
Philips Group
Accelerate! options
2015
options
weighted
average
exercise price
EUR-denominated
Outstanding at January 1, 2015 1,768,800 15.86
Exercised 464,300 15.24
Outstanding at December 31, 2015 1,304,500 16.08
Exercisable at December 31, 2015 1,304,500 16.08
USD-denominated
Outstanding at January 1, 2015 458,800 20.02
Exercised 106,000 20.02
Forfeited 5,000 20.02
Outstanding at December 31, 2015 347,800 20.02
Exercisable at December 31, 2015 347,800 20.02
The exercise prices of the Accelerate! options are EUR
15.24 and EUR 22.43 for EUR-denominated options and
is USD 20.02 for USD-denominated options. The
weighted average remaining contractual term for EUR-
denominated Accelerate! options outstanding and
exercisable at December 31, 2015 was 6.2 years. The
weighted average remaining contractual term for USD-
Accelerate! options outstanding and exercisable at
December 31, 2015 was 6.1 years. The aggregate intrinsic
value of the EUR-denominated Accelerate! options
outstanding and exercisable at December 31, 2015, was
EUR 10 million. The aggregate intrinsic value of the
USD-denominated Accelerate! options outstanding
and exercisable at December 31, 2015, was USD 2
million.
The total intrinsic value of Accelerate! options exercised
during 2015 was EUR 5 million for EUR-denominated
options (2014: EUR 10 million) and USD 1 million for
USD-denominated options (2014: USD 5 million).
Cash received from exercises for EUR-denominated
and USD-denominated Accelerate! options amounted
to EUR 9 million in 2015 (2014: EUR 21 million). The
actual tax deductions realized as a result of Accelerate!
options exercises totaled approximately EUR 0.3
million in 2015 (2014: EUR 1 million).
29 Information on remuneration
Remuneration of the Executive Committee
In 2015, the total remuneration costs relating to the
members of the Executive Committee (including the
members of the Board of Management) amounted to
EUR 15,098,023 (2014: EUR 16,878,909, 2013: EUR
24,773,537) consisting of the elements in the table
below.
At December 31, 2015, the members of the Executive
Committee (including the members of the Board of
Management) held 843,461 (2014: 1,050,080; 2013:
1,479,498) stock options at a weighted average exercise
price of EUR 18.67 (2014: EUR 18.53; 2013: EUR 18.69).
Remuneration of the Board of Management
In 2015, the total remuneration costs relating to the
members of the Board of Management amounted to
EUR 6,612,092 (2014: EUR 6,635,334; 2013: EUR
10,928,951).
At December 31, 2015, the members of the Board of
Management held 479,881 stock options (2014:
586,500; 2013: 586,500) at a weighted average
exercise price of EUR 19.52 (2014: EUR 19.60; 2013: EUR
19.60).
Philips Group
Remuneration costs of the Executive Committee in EUR
2013 - 2015
2013 2014 2015
Salary/Base compensation 6,011,557 6,513,027 5,974,928
Annual incentive1) 4,422,732 1,526,658 2,705,560
Performance shares2) 6,478,554 3,357,142 2,740,004
Stock options2) 2,020,040 583,755 88,775
Restricted share rights2) 1,115,504 409,809 91,339
Pension allowances − − 2,193,409
Pension scheme costs 2,277,705 2,458,759 209,462
Other compensation3) 2,447,445 2,029,759 1,094,546
1) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year
2) Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reect the value of stock options at
the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date
3) The stated amounts mainly concern (share of) allowances to members of the Executive Committee 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 for the value stated. In 2013 a crisis levy tax has been
imposed by the Dutch government, amounting in total to EUR 1,245,944. This amount is included in the amount stated under Other compensation