The Executive Board remuneration policy reflects our longstanding remuneration
principles of supporting the business strategy, paying for performance, and paying
competitively and fairly. The remuneration policy and underlying principles continue
to support our business growth in the widely diverse markets in which we operate.
Part I - Executive Board remuneration policy
Pay for performance
Report of the
Report of the
Annual Report 2016
For 2016, the Remuneration Committee reviewed the remuneration policy versus its implementation, and its outcome versus performance.
With regard to policy, the Supervisory Board decided to recommend one policy change to the 2017 Annual General Meeting of Shareholders,
related to one of the performance measures in the long-term variable award plan. With regard to implementation, the Supervisory Board concluded
that an adjustment to the Labour market peer group was required since two companies were no longer eligible, yet that there were no reasons
to consider any other implementation adjustments.
This Remuneration Report includes three sections:
Describes the prevailing Executive Board remuneration policy, as it was adopted by the AGM in 2011, and as it has been applied in 2016 and will
be applied in 2017.
Provides details of the Executive Board actual remuneration for performance ending in, or at year-end, 2016.
Outlines the adjustments to the Executive Board remuneration policy and implementation for 2017.
The Executive Board remuneration policy is designed to meet four key principles:
Support the business strategy
We align our remuneration policy with business strategies focused on creating long-term growth and shareholder value, while maintaining a tight
focus on short-term financial results.
We set clear and measurable targets for our short-term variable pay and long-term variable award policies, and we pay higher remuneration when
targets are exceeded and lower remuneration when targets are not met.
We set target remuneration to be competitive with other relevant multinational corporations of similar size and complexity.
We set target remuneration to be internally consistent and fair; we regularly review internal pay relativities between the Executive Board and senior
managers and aim to achieve consistency and alignment where possible.