Remuneration principles

The remuneration principles relate to the size (level of remuneration) and structure of the remuneration package provided for the Management Board of Corio N.V.

In order to fulfil the objectives of the remuneration policy, levels of compensation (in both the short term and the long term) have to be in line with levels at comparable Dutch and European companies. With respect to the package’s composition and structure, the Supervisory Board takes into consideration remuneration practices at similar companies as well as the provisions of the Dutch corporate governance code.

The composition of the remuneration package is also based on the principle that trends in results and the company’s share price and other trends of relevance to the company should be taken into consideration when determining the level of compensation. This principle is reflected in trends in annual salary as well as in the structure of the variable remuneration elements and the amounts calculated on the basis of them.

The structure of the remuneration package is based on the principle that remuneration should be based on an equal split between fixed and variable elements (with respect to the long term bonus, this is measured at the time of the conditional award). As far as the variable part is concerned, under normal circumstances the long-term bonus will constitute a greater proportion of total remuneration than the short-term bonus.

The Supervisory Board regularly reviews the composition of the remuneration package and the level of compensation to ensure they are in compliance with these remuneration principles. The Supervisory Board monitors the results of the remuneration policy by carrying out periodical scenario analyses.

The remuneration policy applies in all respects to the members of the Management Board with full responsibility for the holding company. The policy has been adjusted for members of the Management Board with responsibility for a country. The annual salary, annual bonus and pension for these members are also based on the local remuneration market. To the extent that It’s applicable the method used to establish the long-term bonus plan is identical to that used for members with full responsibility for the holding company.

Source: Annual Report 2008, Chapter Overview & Strategy, page 33 (PDF, 476 kB)

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