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Note 23: Remuneration of the Supervisory Board and the Board of Management


Total compensation to key management personnel amounted to €15.4 million (2010: €12.9 million), €7.6 million relates to short-term employee benefits (2010: €7.4 million); €2.1 million to post-employment benefits (2010: €1.7 million) and €5.7 million to share-based compensation (2010: €3.8 million). As from January 1, 2011, the four additional members of the newly established Executive Committee are included in key management personnel.

Supervisory Board

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Committee allowance fee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total remuneration

 

Remuneration

 

Attendance fee

 

Audit committee

 

Remuneration committee

 

Nomination committee

 

Employer’s charges

 

Total remuneration

In €

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

1

Also member of the Nomination Committee.

Karel Vuursteen, Chairman1

 

119,800

 

100,000

 

5,000

 

 

 

15,000

 

2,600

 

122,600

Uwe-Ernst Bufe, Deputy Chairman

 

77,300

 

60,000

 

17,500

 

 

 

 

2,600

 

80,100

Virginia Bottomley1

 

74,800

 

50,000

 

20,000

 

 

10,000

 

 

2,600

 

82,600

Dolf van den Brink

 

72,500

 

50,000

 

5,000

 

20,000

 

 

 

 

75,000

Peggy Bruzelius

 

84,800

 

50,000

 

15,000

 

15,000

 

 

 

95,600

 

175,600

Antony Burgmans1

 

67,500

 

50,000

 

5,000

 

 

15,000

 

 

 

70,000

Peter Ellwood1

 

72,300

 

50,000

 

15,000

 

 

10,000

 

 

2,600

 

77,600

Louis Hughes

 

97,300

 

50,000

 

25,000

 

15,000

 

 

 

2,600

 

92,600

Total

 

666,300

 

460,000

 

107,500

 

50,000

 

35,000

 

15,000

 

108,600

 

776,100

Members of the Supervisory Board receive a fixed remuneration: €100,000 for the Chairman, €60,000 for the Deputy Chairman and €50,000 for the other members. Members of committees receive an extra compensation. Members living outside the Netherlands receive an attendance fee dependent on the country of residence. Members who are resident in the Netherlands do not receive an attendance fee except for meetings held outside the Netherlands. The social charges of Mrs. Bruzelius paid in 2011 related to employer’s contribution in the Netherlands (€2,600) and in Sweden over a four-year period (€93,000).

In accordance with the Articles of Association and good corporate governance practice, the remuneration of Supervisory Board members is not dependent on the results of the company.

We do not grant share-based compensation to our Supervisory Board members, neither do we provide loans. Travel expenses and facilities for members of the Supervisory Board are borne by the company and reviewed by the Audit Committee. The shares in the company owned by Supervisory Board members serve as a long-term investment in the company.

Shares held by the members of the Supervisory Board

 

 

 

 

 

Number of shares at year-end

 

2010

 

2011

Karel Vuursteen

 

400

 

400

Uwe-Ernst Bufe

 

500

 

500

Virginia Bottomley

 

1,758

 

1,758

Dolf van den Brink

 

500

 

500

Peggy Bruzelius

 

500

 

500

Antony Burgmans

 

500

 

500

Peter Ellwood

 

500

 

500

Louis Hughes

 

500

 

500

Board of Management

The individual contracts of the members of the Board of Management are determined by the Supervisory Board within the framework of the remuneration policy adopted by the Annual General Meeting of shareholders. We do not provide loans to members of the Board of Management. For more detailed information on the decisions of the Supervisory Board with respect to the individual contracts of the members of the Board of Management, see the Remuneration report.

Board remuneration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary

 

Short-term incentives

 

Other short-term benefits

 

Post-employment benefits

 

Share-based compensation

 

Total remuneration

In €

 

2010

 

2011

 

2010

 

2011

 

2010

 

2011

 

2010

 

2011

 

2010

 

2011

 

2010

 

2011

Hans Wijers

 

765,700

 

788,700

 

1,284,200

 

423,500

 

4,400

 

4,900

 

722,500

 

482,900

 

1,007,000

 

1,132,100

 

3,783,800

 

2,832,100

Leif Darner

 

574,300

 

591,500

 

513,000

 

206,400

 

151,800

 

154,200

 

272,200

 

217,900

 

741,000

 

848,500

 

2,252,300

 

2,018,500

Rob Frohn

 

574,300

 

591,500

 

513,000

 

206,400

 

7,100

 

7,400

 

206,900

 

185,800

 

741,000

 

848,500

 

2,042,300

 

1,839,600

Tex Gunning

 

574,300

 

591,500

 

513,000

 

206,400

 

4,400

 

4,900

 

277,200

 

240.800

 

628,700

 

848,500

 

1,997,600

 

1,892,100

Keith Nichols

 

574,300

 

591,500

 

513,000

 

206,400

 

213,300

 

238,900

 

204,400

 

198,200

 

709,000

 

848,500

 

2,214,000

 

2,083,500

Total

 

3,062,900

 

3,154,700

 

3,336,200

 

1,249,100

 

381,000

 

410,300

 

1,683,200

 

1,325,600

 

3,826,700

 

4,526,100

 

12,290,000

 

10,665,800

Short-term incentive

The short-term incentive for 2011 is linked to EVA (35 percent), EBITDA (35 percent) and the individual and qualitative targets of the members of the Board of Management (30 percent). For more information, see the Remuneration report. The incentive for 2010 included a deferred pay-out for 2009, which was made subject to achieving EBITDA margin of 14 percent.

Post-employment benefits

Pension premiums were calculated over the 2011 remuneration. These amounts together with the premiums over the 2011 short-term incentives are included in the post-employment benefits as presented.

Other short-term benefits

Other short-term benefits include employer’s charges and other compensations. Employer’s charges refer to social contributions and healthcare contributions. The social charges of Mr. Nichols (€187,800) related to employer’s contribution in the UK. A compensation for living expenses and home leave allowances was paid to Mr. Darner (€149,300) and Mr. Nichols (€51,100).

Share-based compensation

The costs for share-based compensation are non-cash and related to the performance-related share plan following IFRS 2.

Stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year of issue

 

Exercise price in €

 

Outstanding at January 1, 2011

 

Forfeited in 2011

 

Exercised in 2011

 

Outstanding at December 31, 2011

 

Expiry date

Hans Wijers

 

2002

 

46.53

 

14,850

 

 

 

14,850

 

April 25, 2012

 

 

2004

 

31.45

 

23,000

 

 

(23,000)

 

 

April 25, 2011

 

 

2005

 

31.98

 

23,000

 

 

 

23,000

 

April 24, 2012

 

 

2006

 

46.46

 

19,800

 

 

 

19,800

 

April 26, 2013

 

 

2007

 

58.89

 

19,800

 

 

 

19,800

 

April 26, 2014

Value of outstanding options (in €)

 

 

 

 

 

 

 

 

 

 

 

199,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leif Darner

 

2006

 

46.46

 

13,000

 

 

 

13,000

 

April 26, 2013

 

 

2007

 

58.89

 

13,000

 

 

 

13,000

 

April 26, 2014

Value of outstanding options (in €)

 

 

 

 

 

 

 

 

 

 

 

47,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rob Frohn

 

2006

 

46.46

 

13,000

 

 

 

13,000

 

April 26, 2013

 

 

2007

 

58.89

 

13,000

 

 

 

13,000

 

April 26, 2014

Value of outstanding options (in €)

 

 

 

 

 

 

 

 

 

 

 

47,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keith Nichols

 

2006

 

46.46

 

3,000

 

 

 

3,000

 

April 26, 2013

 

 

2007

 

58.89

 

3,750

 

 

 

3,750

 

April 26, 2014

Value of outstanding options (in €)

 

 

 

 

 

 

 

 

 

 

 

12,100

 

 

Performance-related shares

With regard to the performance related shares granted to the members of the Board of Management in 2009, the final vesting percentage of the series 2009-2011 equaled 62.5 percent (series 2008-2010: zero), including dividend shares 69.8 percent. The members of the Board of Management will retain the shares for a minimum period of two years after vesting.

Shares in the company and options of the members of the Board of Management are held in an account, administered by the Stichting Executive Management Beheer. This Foundation acts as an independent portfolio manager for AkzoNobel participants.

Number of performance-related shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series

 

Balance at January 1, 2011

 

Granted in 2011

 

Vested in 2011

 

Forfeited in 2011

 

Dividend in 2011

 

Balance at December 31, 2011

 

Vested on January 1, 2012

Hans Wijers

 

2009 – 2011

 

39,638

 

 

 

(15,328)

 

1,237

 

25,547

 

25,547

 

 

2010 – 2012

 

25,144

 

 

 

 

820

 

25,964

 

 

 

2011 – 2013

 

 

24,800

 

 

 

764

 

25,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leif Darner

 

2009 – 2011

 

29,674

 

 

 

(11,474)

 

925

 

19,125

 

19,125

 

 

2010 – 2012

 

18,858

 

 

 

 

615

 

19,473

 

 

 

2011 – 2013

 

 

18,600

 

 

 

573

 

19,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rob Frohn

 

2009 – 2011

 

29,674

 

 

 

(11,474)

 

925

 

19,125

 

19,125

 

 

2010 – 2012

 

18,858

 

 

 

 

615

 

19,473

 

 

 

2011 – 2013

 

 

18,600

 

 

 

573

 

19,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tex Gunning

 

2009 – 2011

 

29,674

 

 

 

(11,474)

 

925

 

19,125

 

19,125

 

 

2010 – 2012

 

18,858

 

 

 

 

615

 

19,473

 

 

 

2011 – 2013

 

 

18,600

 

 

 

573

 

19,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keith Nichols

 

2009 – 2011

 

29,674

 

 

 

(11,474)

 

925

 

19,125

 

19,125

 

 

2010 – 2012

 

18,858

 

 

 

 

615

 

19,473

 

 

 

2011 – 2013

 

 

18,600

 

 

 

573

 

19,173

 

Shares held by the Board of Management

 

 

 

 

 

Number of shares at year-end

 

2010

 

2011

Hans Wijers

 

75,324

 

75,324

Leif Darner

 

51,162

 

46,162

Rob Frohn

 

22,751

 

22,751

Keith Nichols

 

7,069

 

7,069

Former members of the Board of Management

In 2011, charges for former members of the Board of Management amounted to €21,000 (2010: €382,000), mainly due to pension expenses.

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