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Remuneration elements


The total remuneration package of the members of the Board of Management consists of:

  • Base salary
  • Performance-related short-term incentive
  • Performance-related shares
  • Pension provisions.

Furthermore, all members of the Board of Management are entitled to other benefits – such as a company car and representation allowance – which are needed for carrying out their duties and which are in line with market norms.

For communication purposes, the table below presents a summarizing overview of the remuneration of the current members of the Board of Management. Reference is made to note 23 of the Financial statements for more details.

In 2010, the value of fixed and variable cash components at target levels breaks down as follows:

CEO in %

Remuneration – CEO (pie chart)

Board members in %

Remuneration – Board members (pie chart)

Compensation overview members of the Board of Management 2008 – 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In €

Hans Wijers
Chief Executive Officer

Leif Darner
Board member Performance Coatings

Rob Frohn
Board member Specialty Chemicals

Tex Gunning3
Board member Decorative Paints

Keith Nichols4
Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

2008

2009

2010

2008

2009

2010

2008

2009

2010

2008

2009

2010

2008

2009

2010

1

Actual short-term incentive disclosed relates to the performance in the financial year and the deferred payments over 2009 (50 percent for the CEO and 25 percent for the other members).

2

Costs are non-cash and relate to the expenses following IFRS 2.

3

As from May 1, 2009.

4

Other emoluments relate to employer’s contribution in the UK.

Base salary

760,000

760,000

765,700

570,000

570,000

574,300

570,000

570,000

574,300

380,000

574,300

380,000

570,000

574,300

Short-term incentive1

700,000

464,000

1,284,200

340,000

339,300

513,000

340,000

339,300

513,000

226,200

513,000

226,700

339,300

513,000

Share awards2

485,900

678,400

981,900

325,500

481,500

724,500

325,500

481,500

724,500

277,600

628,700

131,300

382,500

704,200

Option awards2

161,500

99,200

25,100

105,900

65,100

16,500

105,900

65,100

16,500

25,000

18,200

4,800

Pension premium paid

565,600

458,400

722,500

291,400

208,600

272,200

156,200

146,000

206,900

88,900

277,200

57,600

124,700

204,400

Other emoluments

4,500

4,100

4,400

4,600

4,100

4,400

7,200

6,900

7,100

2,700

4,400

45,200

112,700

162,200

Other compensation

169,300

147,800

147,400

47,500

36,900

58,700

51,100

Total remuneration

2,677,500

2,464,100

3,783,800

1,806,700

1,816,400

2,252,300

1,504,800

1,656,300

2,042,300

975,400

1,997,600

902,700

1,606,100

2,214,000

The table summarizes the remuneration package of the members of the Board of Management of AkzoNobel. The elements of the remuneration package are addressed in more detail in the paragraphs on the following pages.

Total remuneration package

 

 

 

 

 

Fixed

Variable

 

 

 

 

 

Element

Base salary

Short-term incentive

Long-term incentive

Vehicle

Cash

Cash

Performance-related restricted shares

Performance measure

Not applicable

EVA: 35%
EBITDA: 35%
Personal: 30%

Relative total
shareholder return: 50%
DJSI ranking: 50%

Pay-out at minimum performance

100%

0%

0%

Target pay-out as % of base salary

100%

CEO: 100%
Member: 65%

CEO: 75%
Member: 69%

Maximum pay-out as % of base salary

100%

CEO: 150%
Member: 100%

CEO: 113%
Member: 104%

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