ING Direct 2007 Annual Report Download - page 32

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Remuneration structure
Executive Board compensation consists
of three basic components:
Fixed 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,
which compensates for performance
measured over multiple years and is
forward-looking.
Base salary 2007
The base salary of the Executive Board
members has been frozen for 2007,
as was the case in 2004, 2005 and 2006.
Short-term incentive plan 2007
The short-term incentive (STI) is for
70% based on Group fi nancial targets
(underlying net profi t, underlying operating
expenses and economic profi t/embedded
value profi t, excluding fi nancial variances),
and for 30% based on individual
objectives. The target STI payout over
2007 was set at 100% of the individual
Executive Board member’s base salary.
Over 2007, ING exceeded on average the
three Group fi nancial targets set, resulting
in a score of 136% of target on this
component. The individual performance
of the Executive Board members was on
average 182%.
–
–
–
Compensation in cash of the individual members of the Executive Board
amounts in thousands of euros 2007 2006 2005
Michel Tilmant
Base salary 1,289 1,289 1,289
Short-term performance-related bonus 2,001 2,299 1,520
Total cash compensation 3,290 3,588 2,809
Eric Boyer de la Giroday
Base salary 850 850 850
Short-term performance-related bonus 1,319 1,477 945
Total cash compensation 2,169 2,327 1,795
Dick Harryvan (1)
Base salary 634 423
Short-term performance-related bonus 842 710
Total cash compensation 1,476 1,133
John Hele (2) (3)
Base salary 412
Short-term performance-related bonus 621
Total cash compensation 1,033
Eli Leenaars
Base salary 634 634 634
Short-term performance-related bonus 956 1,102 705
Total cash compensation 1,590 1,736 1,339
Tom McInerney (1) (3)
Base salary 946 690
Short-term performance-related bonus 1,425 1,157
Total cash compensation 2,371 1,847
Hans van der Noordaa (1)
Base salary 634 423
Short-term performance-related bonus 956 710
Total cash compensation 1,590 1,133
Koos Timmermans (2)
Base salary 423
Short-term performance-related bonus 637
Total cash compensation 1,060
Jacques de Vaucleroy (1)
Base salary 634 423
Short-term performance-related bonus 956 710
Total cash compensation 1,590 1,133
(1) 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.
(2) John Hele and Koos Timmermans were appointed
to the Executive Board on 24 April 2007. The fi gures
for these members refl ect compensation earned in
their capacity as Executive Board members. Thus,
the fi gures for 2007 refl ect the partial year as
Executive Board members.
(3) John Hele and Tom McInerney get their
compensation in US dollars. For each year the
compensation in US dollars was converted to
euros at the average exchange rate for that year.
30 Our governance
Remuneration
ING Group Annual Review 2007