Agreements for members of the Board of Management appointed in 2004 and subsequent years are concluded for a period not exceeding four years in accordance with the Dutch Corporate Governance Code. After the initial term, re-appointments may take place for consecutive periods of up to four years each. The notice period by the Board member is subject to a term of three months; notice by the company shall be subject to a six-month term.
In case of termination prior to the expiration of a Board member’s term, or if re-appointment does not take place and the agreement between the Board member concerned and Akzo Nobel N.V. is not continued, the Board member will be entitled to a severance payment, established in accordance with the Dutch Corporate Governance Code. The agreement for Mr. Wijers, who was appointed before 2004, has not been adjusted in this respect (see ). However, after Mr. Wijers has retired from his current role, all agreements between the Board members and Akzo Nobel N.V. will be in accordance with the relevant provisions of the Dutch Corporate Governance Code.
Members of the Board of Management normally retire in the year that they reach the age of 62. The employment agreements allow the Supervisory Board to request a Board member to resign between the age of 60 and the regular retirement age for effective succession planning within the Board. In such an exceptional situation, the Board member concerned will be entitled to fixed salary payments until the date of retirement.
As Mr. Wijers will retire from his current role of member of the Board of Management and CEO of the company with effect from April 23, 2012, it shall be proposed to the Annual General Meeting of shareholders to appoint Mr. Büchner as member of the Board Management. It is the Supervisory Board’s intention to appoint Mr. Büchner as CEO with effect from April 23, 2012. Mr. Büchner joined the company on December 1, 2011. Mr. Büchner’s employment agreement is compliant with the Dutch Corporate Governance Code, the most important elements of which will be disclosed in accordance therewith.
The company does not grant any personal loans to its Board members.