Employment agreements for members of the Board of Management appointed in 2004 and subsequent years are concluded for a period of four years in accordance with the Dutch Corporate Governance Code. After this initial term, reappointments may take place for consecutive periods of four years each or, if applicable, up until their date of retirement if less than four years from their reappointment.
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.
If reappointment does not take place and the employment 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 employment agreement for Mr. Wijers, who was appointed before 2004, has not been adjusted in this respect (see ). However, the Supervisory Board has the intention to take the provisions of the Code as guidance for establishing severance payment if that were to occur.
Members of the Board of Management normally retire in the year that they reach the age of 62. The employment contracts 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.
The company does not grant any personal loans to its Board members.