ING Direct 2009 Annual Report Download - page 169

Key management personnel compensation (Executive Board and Management Boards)
amounts in thousands of euros
Executive
Board of
ING Groep N.V. (1)
Management
Boards of
ING Bank N.V.
and ING
Verzekeringen
N.V. (2) Total 2009 Total 2008
Base salary and short-term bonus (3) 4,936 2,933 7,869 7,052
Pension costs 935 772 1,707 3,580
Termination benefit 665 665
Retirement benefit 1,353 1,200 2,553
Total compensation 7,224 5,570 12,794 10,632
(1) Comprising eight members from 1 January 2009 to 31 May 2009 and 3 members from 1 June 2009 to 31 December 2009.
(2) As of 1 June 2009, excluding three members that are also members of the Executive Board of ING Groep N.V.
(3) Increase in 2009 due to change in composition.
Key management personnel compensation (Supervisory Board)
amounts in thousands of euros
Supervisory Board
2009 2008
Base salary and short-term bonus 1,128 986
Total compensation 1,128 986
Loans and advances to key management personnel
amounts in thousands of euros
Amount outstanding 31 December Average interest rate Repayments
2009 2008 2009 2008 2009 2008
Executive Board members 380 999 4.6% 4.8% 16
Management Boards members of ING Bank N.V.
and ING Verzekeringen N.V. 244 1,342 3.6% 4.4% 933 19
Supervisory Board members 282 8.6%
Total 906 2,341 933 35
The total number of stock options on ING Groep N.V. shares held by the Executive Board members of ING Group N.V. amounted to
164,689 as at 31 December 2009 (2008: 896,934) and total number of stock options on ING Groep N.V. shares held by Management
Board members of ING Bank N.V. and ING Verzekeringen N.V. amounted to 2,718,765 as at 31 December 2009 (2008: 2,539,649).
As at 31 December 2009, members of the Executive Board held 60,883 ING Groep N.V. shares (2008: 39,456) and members of the
Management Boards of ING Bank N.V. and ING Verzekeringen N.V. held 266,239 ING Groep N.V. shares (2008: 209,131). As at
31 December 2009, members of the Supervisory Board held 140,207 ING Groep N.V. shares (2008: 8,940).
There are no significant provisions for doubtful debts or individually significant bad debt expenses recognised on outstanding balances
with related parties.
Transactions with the Dutch State
Illiquid Assets Back-up Facility
ING Group and the Dutch State reached an agreement on an Illiquid Assets Back-Up Facility (‘IABF’) on 26 January 2009. The transaction
closed on 31 March 2009. The IABF covers the Alt-A portfolios of both ING Direct US and ING Insurance Americas, with a par value of
approximately EUR 30 billion. Under the IABF, ING transferred 80% of the economic ownership of its Alt-A portfolio to the Dutch State. As
a result, an undivided 80% interest in the risk and rewards on the portfolio was transferred to the Dutch State. ING retained 100% of the
legal ownership of its Alt-A portfolio. The transaction price was 90% of the par value with respect to the 80% proportion of the portfolio
of which the Dutch State has become the economic owner. The transaction price remains payable by the Dutch State to ING and will be
redeemed over the remaining life. Furthermore, under the IABF ING pays a guarantee fee to the State and receives a funding fee and a
management fee. As a result of the transaction ING derecognised 80% of the Alt-A portfolio from its balance sheet and recognised a
receivable from the Dutch State. The transferred Alt-A portfolio was previously included in Available-for-sale debt securities. The Dutch
State also acquired certain consent rights with respect to the sale or transfer of the 20% proportion of the Alt-A portfolio that is retained
by ING.
Under the terms of the transaction as agreed on 26 January 2009, the overall sales proceeds amounted to EUR 22.4 billion. The amortised
cost (after prior impairments) at the date of the transaction was also approximately EUR 22.4 billion. The transaction resulted in a loss in
the first quarter of 2009 of EUR 109 million after tax (the difference between the sales proceeds and the amortised cost). The fair value
under IFRS at the date of the transaction was EUR 15.2 billion.
In order to obtain approval from the European Commission on ING Group’s Restructuring Plan (see below), ING agreed to make additional
Illiquid Assets Back-up Facility payments as part of the overall agreement with the European Commission to the Dutch State corresponding
to an adjustment of the fees for the Illiquid Assets Back-up Facility. In total, these additional Illiquid Assets Back-up Facility payments as
part of the overall agreement with the European Commission amounted to a net present value of EUR 1.3 billion pre-tax, which was
Additional information to the consolidated balance sheet of ING Group (continued)
2.1 Consolidated annual accounts
ING Group Annual Report 2009 167