ING Direct 2007 Annual Report Download - page 33

Long-term incentives of the individual members of the Executive Board (1)
fair market value at grant in thousands of euros 2007 2006 2005
Michel Tilmant
Number of options 132,054 132,163 108,200
Number of performance shares 31,293 27,650 19,300
Fair market value of long-term incentive (2) 1,521 1,734 1,160
Eric Boyer de la Giroday
Number of options 87,066 87,138 71,400
Number of performance shares 20,632 18,230 12,800
Fair market value of long-term incentive (2) 1,003 1,143 765
Dick Harryvan (3)
Number of options 64,967 43,347
Number of performance shares 15,396 9,069
Fair market value of long-term incentive (2) 748 569
John Hele (4)
Number of options 42,228
Number of performance shares 10,007
Fair market value of long-term incentive (2) 486
Eli Leenaars
Number of options 64,967 65,021 53,200
Number of performance shares 15,396 13,603 9,500
Fair market value of long-term incentive (2) 748 853 571
Tom McInerney (3) (5)
Number of options 96,875 70,695
Number of performance shares 22,957 14,790
Number of conditional shares 54,312 37,633
Fair market value of long-term incentive (2) 2,571 2,201
Hans van der Noordaa (3)
Number of options 64,967 43,347
Number of performance shares 15,396 9,069
Fair market value of long-term incentive (2) 748 569
Koos Timmermans (4)
Number of options 43,312
Number of performance shares 10,264
Fair market value of long-term incentive (2) 499
Jacques de Vaucleroy (5)
Number of options 64,967 43,347
Number of performance shares 15,396 9,069
Fair market value of long-term incentive (2) 748 569
(1) Long-term incentives are granted in the year
following the reporting year. The long-term incentive
plan provides for a combination of share options and
provisional performance shares based on a 50/50
split in value. The ratio of options to performance
shares varies each year as a result of the fair value
calculation and the 50/50 split in value. The fair value
calculation for the performance year 2007 resulted in
a ratio of options to performance shares of 4.22 : 1
(2006: 4.78 : 1, 2005: 5.6 : 1). The maximum number
of stock options and performance shares to be
granted to the Executive Board members will be
tabled for approval at the General Meeting of
Shareholders.
(2) The fair market value of a long-term incentive
award refl ects the estimated fair market value of
the long-term incentive award based on a fair value
calculation. The valuation is calculated on the last
trading day of the year for grants made to the
Executive Board members for performance over
the specifi ed year and is not updated for current
market values.
(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.
(4)
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.
(5) Tom McInerney will receive conditional shares
on the same grant date as the other long-term
incentive awards. The conditional shares will be
100% vested four years after the grant date with
the condition being an active employment contract.
The conditional shares are provided to align
Tom McInerney’s total remuneration with US
market practice.
Long-term incentive plan 2007
The target level for the 2007 long-term
incentive (LTI) was set at 100% of base
salary for each Executive Board member.
As the STI performance outcome over 2007
was 136%, the resulting LTI award is 118%
of target. The number of options and
performance shares is determined based on
a reference price set at the end of 2007
(EUR 26.79) and a ‘fair value’ calculation of
options and performance shares (based on
a pricing model).
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ING Group Annual Review 2007