Corporate Governance and Nomination and Selection Committee report

The Corporate Governance and Nomination & Selection Committee, currently consisting of three members, reviews the corporate governance principles applicable to the Company and the selection criteria and appointment procedures for the Board of Management, the Group Management Committee and the Supervisory Board and advises the Supervisory Board thereon. Furthermore, it supervises the policy of the Board of Management on the selection criteria and appointment procedures for Philips’ senior management.
In 2009 the Committee consulted with the President/CEO and other members of the Board of Management on the appointment or reappointment of candidates to fill current and future vacancies on the Board of Management, the Group Management Committee and the Supervisory Board, and prepared decisions and advised the Supervisory Board on the candidates for appointment. The Committee devoted specific attention to the succession of Mr Kleisterlee, who will resign as CEO and President of the Company in April 2011. In connection therewith and in view of the reappointment of Mr Provoost and Mr Ragnetti the Supervisory Board also proposes a (early) reappointment of Mr Dutiné and Mr Rusckowski to underline continuity in a well-functioning management team. The Committee also discussed potential candidates for future positions on the Board of Management.
The Committee discussed developments in the area of corporate governance and legislative changes. The Committee devoted specific attention to the impact of the amendments to the Dutch Corporate Governance Code which was amended in December 2008, as well as further steps the Company could take to improve its corporate governance structure. It also discussed possible agenda items for the upcoming 2010 General Meeting of Shareholders.