Information on remuneration

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Remuneration of the Board of Management

In 2009, remuneration and pension charges relating to the members of the Board of Management amounted to EUR 5,970,230 (2008: EUR 6,992,350, 2007: EUR 8,732,378). In 2009, an amount of EUR 621,147 (2008: EUR 619,252, 2007: EUR 739,861) was awarded in the form of other compensation. When pension rights are granted to members of the Board of Management, necessary payments (if insured) and all necessary provisions are made in accordance with the applicable accounting principles. In 2009, no (additional) pension beneﬁts were granted to former members of the Board of Management.

In 2009, the members of the Board of Management were granted 259,200 stock options (2008: 259,218 stock options, 2007: 318,132 stock options) and 69,132 restricted share rights (2008: 86,406 restricted share rights; 2007: 106,044 restricted share rights).

At December 31, 2009, the members of the Board of Management held 2,064,872 stock options (2008: 1,805,672; 2007: 1,771,097) at a weighted average exercise price of EUR 25.47 (2008: EUR 27.31; 2007: EUR 28.05).

Please refer to Report of the Remuneration Committee for further information.

Remuneration of individual members of the Board of Management in euros
	salary	annual incentive¹⁾	total cash	other compensation²⁾

2009
G.J. Kleisterlee	1,100,000	220,000	1,320,000	329,117
P-J. Sivignon	700,000	105,000	805,000	37,988
G.H.A. Dutiné	625,000	93,750	718,750	119,197
T.W.H.P. van Deursen ³⁾	−	22,500	22,500	−
R.S. Provoost	635,000	95,250	730,250	25,465
A. Ragnetti	635,000	95,250	730,250	42,777
S.H. Rusckowski	635,000	221,470	856,470	66,603
	4,330,000	853,220	5,183,220	621,147

2008
G.J. Kleisterlee	1,100,000	490,512	1,590,512	324,346
P-J. Sivignon	687,500	217,386	904,886	8,738
G.H.A. Dutiné	618,750	200,664	819,414	135,673
T.W.H.P. van Deursen⁴⁾	150,000	267,984	417,984	20,068
R.S. Provoost	620,000	247,607	867,607	26,406
A. Ragnetti	613,750	329,571	943,321	37,665
S.H. Rusckowski ⁵⁾	620,000	103,164	723,164	66,356
	4,410,000	1,856,888	6,266,888	619,252

2007
G.J. Kleisterlee	1,087,500	1,186,618	2,274,118	304,047
P-J. Sivignon	637,500	508,550	1,146,050	25,218
G.H.A. Dutiné	587,500	513,691	1,101,191	140,116
A. Huijser ⁶⁾	−	140,098	140,098	−
T.W.H.P. van Deursen	587,500	380,190	967,690	73,701
J.A. Karvinen ⁷⁾	−	382,579	382,579	−
R.S. Provoost	562,500	335,551	898,051	22,007
A. Ragnetti	531,250	354,893	886,143	37,031
S.H. Rusckowski ⁸⁾	431,250	−	431,250	137,741
	4,425,000	3,802,170	8,227,170	739,861

¹⁾	The annual incentives paid are related to the level of performance achieved in the previous year.
²⁾	The stated amounts concern (share of) allowances to members of the Board of Management that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the ﬁscal authorities in the Netherlands is the starting point for the value stated.
³⁾	Annual incentive ﬁgure relates to period January 1 - March 31, 2008.
⁴⁾	Salary amount and amount under ‘other compensation’ relates to period January 1 - March 31, 2008.
⁵⁾	Annual incentive ﬁgure relates to period of board membership April 1 - December 31, 2007.
⁶⁾	Annual incentive ﬁgure relates to period January 1 - March 31, 2006.
⁷⁾	Annual incentive ﬁgure relates to period April 1 - November 30, 2006.
⁸⁾	The salary amount as well as the amount under ‘other compensation’ relates to the period April 1 - December 31, 2007. The annual incentive paid out relates to the period before board membership and is not stated.

The tables below give an overview of the interests of the members of the Board of Management under the restricted share rights plans and the stock option plans of the Company:

Number of restricted share rights
	January 1, 2009	awarded 2009	released 2009	December 31, 2009¹⁾	potential premium shares

G.J. Kleisterlee	44,163	17,922	21,015	41,070	19,398
P-J. Sivignon	26,002	10,242	12,701	23,543	11,099
G.H.A. Dutiné	24,935	10,242	12,001	23,176	11,388
R.S. Provoost	24,935	10,242	12,001	23,176	10,854
A. Ragnetti	24,601	10,242	11,667	23,176	10,528
S.H. Rusckowski²⁾	26,335	10,242	13,034	23,543	11,993
	170,971	69,132	82,419	157,684	75,260

¹⁾	Excluding potential premium shares
²⁾	Partly awarded before date of appointment as a member of the Board of Management

Stock options

	January 1, 2009	granted	exercised	December 31, 2009	exercise price (in euros)	share (closing) price on exercise date	expiry date

G.J. Kleisterlee	52,500¹⁾	−	−	52,500¹⁾	42.24³⁾	−	02.17.2010
	105,000	−	−	105,000	37.60	−	02.08.2011
	115,200	−	−	115,200	30.17	−	02.07.2012
	52,803	−	−	52,803	16.77	−	04.15.2013
	48,006	−	−	48,006	24.13	−	04.13.2014
	48,006	−	−	48,006	19.41	−	04.18.2015
	48,006	−	−	48,006	26.28	−	04.18.2016
	73,926	−	−	73,926	30.96	−	04.16.2017
	67,203	−	−	67,203	23.11	−	04.14.2018
	−	67,200	−	67,200	12.63	−	04.14.2019

P-J. Sivignon	32,004	−	−	32,004	22.07	−	07.18.2015
	33,003	−	−	33,003	26.28	−	04.18.2016
	42,903	−	−	42,903	30.96	−	04.16.2017
	38,403	−	−	38,403	23.11	−	04.14.2018
	−	38,400	−	38,400	12.63	−	04.14.2019

G.H.A. Dutiné	124,800^1,2)	−	−	124,800^1,2)	30.17	−	02.07.2012
	35,208	−	−	35,208	16.77	−	04.15.2013
	32,004	−	−	32,004	24.13	−	04.13.2014
	32,004	−	−	32,004	19.41	−	04.18.2015
	30,006	−	−	30,006	26.28	−	04.18.2016
	39,600	−	−	39,600	30.96	−	04.16.2017
	38,403	−	−	38,403	23.11	−	04.14.2018
	−	38,400	−	38,400	12.63	−	04.14.2019

R.S. Provoost	56,875^1,2)	−	−	56,875^1,2)	42.90	−	10.17.2010
	29,750¹⁾	−	−	29,750¹⁾	37.60	−	02.08.2011
	49,200^1,2)	−	−	49,200^1,2)	30.17	−	02.07.2012
	16,250^1,2)	−	−	16,250^1,2)	34.78	−	04.16.2012
	26,406¹⁾	−	−	26,406¹⁾	16.77	−	04.15.2013
	8,667¹⁾	−	−	8,667¹⁾	22.12	−	10.14.2013
	24,003¹⁾	−	−	24,003¹⁾	24.13	−	04.13.2014
	24,003¹⁾	−	−	24,003¹⁾	19.41	−	04.18.2015
	30,006	−	−	30,006	26.28	−	04.18.2016
	39,600	−	−	39,600	30.96	−	04.16.2017
	38,403	−	−	38,403	23.11	−	04.14.2018
	−	38,400	−	38,400	12.63	−	04.14.2019

¹⁾	Awarded before date of appointment as a member of the Board of Management
²⁾	(Partly) sign-on grant
³⁾	The Supervisory Board and the Board of Management have decided to adjust upwards the exercise price of all options granted to, but not yet exercised by, members of the Board of Management as of July 31, 2000 by EUR 0.21 per common share in connection with the 3% share reduction program effected mid-2000
⁴⁾	Awarded under the US stock option plan

Stock options

	January 1, 2009	granted	exercised	December 31, 2009	exercise price (in euros or USD)	share (closing) price on exercise date	expiry date

A. Ragnetti	30,000^1,2)	−	−	30,000	15.29	−	02.11.2013
	17,604¹⁾	−	−	17,604	16.77	−	04.15.2013
	18,405¹⁾	−	−	18,405	24.13	−	04.13.2014
	24,003¹⁾	−	−	24,003	19.41	−	04.18.2015
	27,000	−	−	27,000	26.28	−	04.18.2016
	39,600	−	−	39,600	30.96	−	04.16.2017
	38,403	−	−	38,403	23.11	−	04.14.2018
	−	38,400	−	38,400	12.63	−	04.14.2019

S.H. Rusckowski	27,000^1,4)	−	−	27,000^1,4)	$28.78	−	04.13.2014
	2,700^1,4)	−	−	2,700^1,4)	$25.43	−	01.27.2015
	31,500^1,4)	−	−	31,500^1,4)	$25.28	−	04.18.2015
	31,500^1,4)	−	−	31,500^1,4)	$32.25	−	04.18.2016
	4,500^1,4)	−	−	4,500^1,4)	$34.56	−	10.16.2016
	42,903	−	−	42,903	30.96	−	04.16.2017
	38,403	−	−	38,403	23.11	−	04.14.2018
	−	38,400	−	38,400	12.63	−	04.14.2019

	1,805,672	259,200	−	2,064,872

¹⁾	Awarded before date of appointment as a member of the Board of Management
²⁾	(Partly) sign-on grant
³⁾	The Supervisory Board and the Board of Management have decided to adjust upwards the exercise price of all options to, but not yet exercised by, members of the Board of Management as of July 31, 2000 by EUR 0.21 per common share in connection with the 3% share reduction program affected mid-2000
⁴⁾	Awarded under US stock option plan

See note (30) Share-based compensation for further information on stock options and restricted share rights.

The total pension charges of the members of the Board of Management in 2009 amount to EUR 787,010 (2008: EUR 725,462; 2007: EUR 505,208).

The accumulated annual pension entitlements and the pension costs of individual members of the Board of Management are as follows (in euros):


	age at December 31, 2009	accumulated annual pension as of December 31, 2009¹⁾	pension costs²⁾

G.J. Kleisterlee³⁾	63	777,567	(255,757)
P-J. Sivignon	53	38,033	237,832
G.H.A. Dutiné	57	98,560	199,685
R.S. Provoost	50	76,297	190,975
A. Ragnetti	49	47,695	199,680
S.H. Rusckowski	52	21,231	214,595
			787,010

¹⁾	Under ﬁnal pay or average pay plan
²⁾	Including costs related to employer contribution in deﬁned-contribution pension plan
³⁾	As Mr Kleisterlee was born before January 1, 1950, he continued to be a member of the ﬁnal pay plan with a pensionable age of 60. No further accrual takes place

Remuneration of the Supervisory Board

The remuneration of the members of the Supervisory Board amounted to EUR 795,500 (2008: EUR 851,250; 2007: EUR 540,000); former members received no remuneration.

At December 31, the members of the Supervisory Board held no stock options.

The individual members of the Supervisory Board received, by virtue of the positions they held, the following remuneration (in euros):


	membership	committees	fee for inter-continental travel	total

2009
J-M. Hessels	110,000	20,500	−	130,500
J.M. Thompson	65,000	14,000	15,000	94,000
R. Greenbury	65,000	8,000	−	73,000
K.A.L.M. van Miert (Jan.-June)	32,500	5,000	−	37,500
C.J.A. van Lede	65,000	12,500	−	77,500
E. Kist	65,000	15,000	−	80,000
N.L. Wong (Jan.-March)	32,500	−	3,000	35,500
J.J. Schiro	65,000	16,000	−	81,000
H. von Prondzynski	65,000	10,000	−	75,000
C. Poon (Apr.-Dec.)	65,000	−	9,000	74,000
J. van der Veer (July-Dec.)	32,500	5,000	−	37,500
	662,500	106,000	27,000	795,500
2008
W. de Kleuver (Jan.-March)	55,000	5,125	−	60,125
L. Schweitzer (Jan.-March)	32,500	1,500	−	34,000
J-M. Hessels	98,750	19,125	3,000	120,875
J.M. Thompson	65,000	14,000	9,000	88,000
R. Greenbury	65,000	8,000	3,000	76,000
K.A.L.M. van Miert	65,000	10,000	3,000	78,000
C.J.A. van Lede	65,000	12,500	3,000	80,500
E. Kist	65,000	13,750	3,000	81,750
N.L. Wong	65,000	−	9,000	74,000
J.J. Schiro	65,000	14,500	3,000	82,500
H. von Prondzynski	65,000	7,500	3,000	75,500
	706,250	106,000	39,000	851,250
2007
W. de Kleuver	75,000	10,500	−	85,500
L. Schweitzer	41,000	4,500	−	45,500
J-M. Hessels	41,000	7,000	−	48,000
J.M. Thompson	41,000	9,000	−	50,000
R. Greenbury	41,000	4,500	−	45,500
K.A.L.M. van Miert	41,000	4,500	−	45,500
C.J.A. van Lede	41,000	6,000	−	47,000
E. Kist	41,000	4,500	−	45,500
N.L. Wong	41,000	−	−	41,000
J.J. Schiro	41,000	4,500	−	45,500
H. von Prondzynski (Apr.-Dec.)	41,000	−	−	41,000
	485,000	55,000	−	540,000

Supervisory Board members’ and Board of Management members’ interests in Philips shares

Members of the Supervisory Board and of the Board of Management are not allowed to hold any interests in derivative Philips securities.

Number of shares¹⁾
	December 31, 2008	December 31, 2009

H. von Prondzynski	2,930	2,930
J.M. Thompson	1,000	1,000
J. van der Veer	−	5,450
G.J. Kleisterlee	173,039	197,362
P-J. Sivignon	22,769	37,249
G.H.A. Dutiné	46,418	60,626
R.S. Provoost	41,495	55,537
A. Ragnetti	31,597	44,599
S.H. Rusckowski	40,125	54,893

¹⁾	Reference date for board membership is December 31, 2009

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