ING Direct 2006 Annual Report Download - page 33

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Long-term incentives of the members of the Executive Board (1)
amounts in thousands of euros 2006 2005 2004
Michel Tilmant
Number of options 132,163 108,200 82,600
Number of performance shares 27,650 19,300 15,000
Fair market value of long-term incentive (2) 1,734 1,160 661
Cees Maas (3)
Number of options 0 58,600 51,200
Number of performance shares 0 10,500 9,300
Fair market value of long-term incentive (2) 938 628 410
Eric Boyer de la Giroday (4)
Number of options 87,138 71,400 43,400
Number of performance shares 18,230 12,800 7,900
Fair market value of long-term incentive (2) 1,143 765 347
Dick Harryvan (5)
Number of options 43,347
Number of performance shares 9,069
Fair market value of long-term incentive (2) 569
Eli Leenaars (4)
Number of options 65,021 53,200 32,400
Number of performance shares 13,603 9,500 5,900
Fair market value of long-term incentive (2) 853 571 259
Tom McInerney (5) (6)
Number of options 70,695
Number of performance shares 14,790
Number of conditional shares 37,633
Fair market value of long-term incentive (2) 2,201
Hans van der Noordaa (5)
Number of options 43,347
Number of performance shares 9,069
Fair market value of long-term incentive (2) 569
Jacques de Vaucleroy (5)
Number of options 43,347
Number of performance shares 9,069
Fair market value of long-term incentive (2) 569
(1) Long-term incentives are granted in the year following the reporting year. The ratio of options to performance
shares varies each year as a result of the fair value calculation and a 50/50 split in value. The vesting period
for the performance shares is three years.
(2)
Fair market value of long-term incentive refl ects the estimated fair market value of the long-term incentive award
on the date of grant based on a fair value calculation. The valuation is calculated annually for grants made to the
Executive Board members for performance over the year specifi ed.
(3) As a result of Mr. Maas’ retirement from the Executive Board in 2007, he will receive the fair market value of
his 2006 long-term incentive award in cash instead of options and performance shares.
(4) 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.
(5) 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.
(6) 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 and the condition being an active
employment contract. The conditional shares are provided to align Tom McInerney’s total remuneration with the
US market practice.
Long-term incentive plan 2006
The target level for the 2006 long-term
incentive (LTI) was set at 100% of base
salary for each EB member. As the STI
performance outcome over 2006 was
169%, the resulting LTI award is 134.5%
of target. The number of options and
performance shares is determined based
on a reference price set at the end of 2006
(EUR 33.83) and a ‘fair value’ calculation of
options and performance shares (based on
an option-pricing model).
ING Group Annual Review 2006 31