Our remuneration policy has a clear objective, namely to provide remuneration in a form which will attract, retain and motivate the members of the Board of Management as topmanagers of a major international company, while protecting and promoting its objectives. Both the policy itself, and the checks and balances that are applied in its execution, are designed to avoid incidents where members of the Board of Management – and senior executives for whom similar incentive plans apply – act in their own interest, take risks that are not in line with our strategy and risk appetite, or where remuneration levels cannot be justified in any given circumstance.
To ensure that remuneration is linked to performance, a significant proportion of the remuneration package is variable and dependent on the short and long-term performance of the individual Board member and the company.
It is our policy to maintain overall remuneration levels that are at the median level of the external benchmark of a peer group of companies which, as of January 1, 2009, consists of:
- Royal Philips
- Reed Elsevier
- Royal Ahold
- Royal DSM
- Royal KPN
- Royal TNT
- Wolters Kluwer
The Remuneration Committee of the Supervisory Board consults professional independent remuneration experts to ensure an appropriate comparison.