ING Direct 2006 Annual Report Download - page 32

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Remuneration structure
Executive Board compensation consists of
three basic components:
– fi xed or base salary, which represents the
total guaranteed annual income;
– short-term incentive (STI) in cash, which
compensates for past performance
measured over one year;
– long-term incentive (LTI), in stock options
and/or performance shares, compensates
for performance measured over multiple
years and is forward-looking.
Base salary 2006
The base salary of the Executive Board
members has been frozen for 2006, as
was the case in 2004 and 2005.
Short-term incentive plan 2006
The short-term incentive (STI) is for 70%
based on Group fi nancial measures (net
profi t, total operating expenses and return
on economic capital) and for 30% based
on individual performance targets. The
target STI payout over 2006 was set at
100% of the individual Executive Board
member’s base salary. Over 2006, ING
exceeded on average the three Group
fi nancial targets set, resulting in a score of
169% of target on this component. The
individual performance of the Executive
Board members was on average 171%,
including the members who retired in
2006, Fred Hubbell, Alexander Rinnooy
Kan and Hans Verkoren.
Remuneration
Compensation in cash of the members of the Executive Board
amounts in thousands of euros 2006 2005 2004
Michel Tilmant (1)
Base salary 1,289 1,289 1,250
Short-term performance-related bonus 2,299 1,520 866
Total cash compensation 3,588 2,809 2,116
Cees Maas (1)
Base salary 697 697 677
Short-term performance-related bonus 1,244 806 530
Total cash compensation 1,941 1,503 1,207
Eric Boyer de la Giroday (2)
Base salary 850 850 574
Short-term performance-related bonus 1,477 945 445
Total cash compensation 2,327 1,795 1,019
Dick Harryvan (3)
Base salary 423
Short-term performance-related bonus 710
Total cash compensation 1,133
Eli Leenaars (2)
Base salary 634 634 428
Short-term performance-related bonus 1,102 705 321
Total cash compensation 1,736 1,339 749
Tom McInerney (3) (4)
Base salary 690
Short-term performance-related bonus 1,157
Total cash compensation 1,847
Hans van der Noordaa (3)
Base salary 423
Short-term performance-related bonus 710
Total cash compensation 1,133
Jacques de Vaucleroy (3)
Base salary 423
Short-term performance-related bonus 710
Total cash compensation 1,133
(1) The increase in base salary for Michel Tilmant and Cees Maas refl ects a 10% increase effective April 2004,
related to their promotions to chairman and vice-chairman, respectively.
(2) Eric Boyer de la Giroday and Eli Leenaars were appointed to the Executive Board on 28 April 2004.
The fi gures for these members refl ect compensation earned in their capacity as Executive Board members.
Thus, the fi gures for 2004 refl ect the partial year as Executive Board members.
(3) Dick Harryvan, Tom McInerney, Hans van der Noordaa and Jacques de Vaucleroy were appointed to the
Executive Board on 25 April 2006. The fi gures for these members refl ect compensation earned in their capacity
as Executive Board members. Thus, the fi gures for 2006 refl ect the partial year as Executive Board members.
(4) Tom McInerney gets his compensation in US dollars. The compensation in US dollars has been translated to
euros at the average exchange rate for the year.
Our governance
continued
ING Group Annual Review 200630