ING Direct 2011 Annual Report Download - page 84

Compensation of the individual members of the Executive Board
amounts in thousands of euros
2011 (1) 2010 2009
amount number of shares amount
number of options/
shares amount
number of options/
shares
Jan Hommen
Base salary (2) 1,353 1,353 923
Variable remuneration in cash 0 0 0 0 0 0
Variable remuneration in stock 0 0 0 0 0 0
Patrick Flynn (3)
Base salary 750 750 454
Variable remuneration in cash 0 0 0 0 0 0
Variable remuneration in stock 0 0 0 0 0 0
Koos Timmermans (4)
Base salary 563 750 665
Variable remuneration in cash 0 0 0 0 0 0
Variable remuneration in stock 0 0 0 0 0 0
(1) It is noted that while the 2010 Annual Report indicated that the Board members would receive a salary increase and variable remuneration, they decided to
forego the proposed increase in 2011 as well as the variable remuneration in relation to performance year 2010. The above table outlines the actual situation.
(2) Jan Hommen was appointed to the Executive Board on 27 April 2009. Jan Hommen has been remunerated as of 27 April 2009 in accordance with the ‘new’
remuneration policy adopted by the AGM in 2010. The figure for 2009 reflects a partial year as an Executive Board member andwas paid in 2010 after the
‘new’ remuneration policy was adopted.
(3) Patrick Flynn was appointed to the Executive Board on 27 April 2009. Thefigures for this member reflect remuneration earned in the capacity asExecutive
Board member. Thus, the figure for 2009 reflects a partial year as an Executive Board member.
(4) Koos Timmermans stepped down from the Executive Board as per 1October 2011. The figures for this member reflect remuneration earnedin the capacity
as Executive Board member. Thus, the figure for2011 reflects a partial year as an Executive Board member.
Remuneration of former members of the Executive Board amounted
to nil for 2011, nil for 2010 and EUR 2,842 thousand for 2009.
Pension costs
The table below shows the pension costs of the individual members
of the Executive Board.
Pension costs of the individual members of the Executive Board
amounts in thousands of euros 2011 2010 2009
Jan Hommen (1) 00 0
Patrick Flynn (2) 180 134 78
Koos Timmermans (3) 135 158 115
(1) Jan Hommen does not participate in the pension plan.
(2) Patrick Flynn was appointed to the Executive Board on 27 April 2009.
The2009 pension costs for this member reflect the partial year as an
Executive Board member.
(3) Koos Timmermans stepped down from the Executive Board as per
1 October 2011. The 2011 pension costs for this member reflect the partial
year as an Executive Board member.
Pension costs of former members of the Executive Board amounted
to nil for 2011, nil for 2010, and EUR 742 thousand for 2009.
2011 REMUNERATION EXECUTIVE BOARD
The Executive Board remuneration for 2011 is based on the
remuneration policy approved by the 2010 AGM and amended by
the 2011 AGM.
2011 base salary Executive Board
The base salary of all Executive Board members was set at the time
of the introduction of the remuneration policy in 2010 and the
Executive Board decided not to accept a base salary increase in
2011 as ING had not completely repaid all outstanding core Tier 1
securities that were issued to the Dutch State. As a consequence
the base salary level remained at the 2010 level
2011 variable remuneration Executive Board
In 2011 the Executive Board decided that it will not accept
variable remuneration for as long as ING has not completely
repaid all outstanding core Tier 1 securities that were issued to
the Dutch State. As the full repayment did not occur during
2011, the Executive Board did not receive any variable
remuneration in relation to performance year 2011.
It is noted that the total direct compensation levels of the
Executive Board, even if variable remuneration had been
accepted by the Executive Board, continue to be significantly
below the market median. The fact that the Executive Board
has only accepted base salary in 2011 (and not variable
remuneration) makes the current gap between the market
median and ING even more significant.
82 ING Group Annual Report 2011
Remuneration report continued