ING Direct 2013 Annual Report Download - page 85

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 2013 2012 2011
Ralph Hamers (1) 161 - -
Jan Hommen (2) 00 0
Patrick Flynn 178 179 180
Wilfred Nagel (3) 210 132 0
(1) Ralph Hamers was appointed to the Executive Board on 13 May 2013. The
2013 pension costs for him reflect the partial year as an Executive Board
member.
(2) Jan Hommen retired on 1 October 2013 and did not participate in the
pension plan.
(3) Wilfred Nagel was appointed to the Executive Board on 14 May 2012. The
2012 pension costs for him reflect the partial year as an Executive Board
member.
Pension costs of former members of the Executive Board in their
capacity as Executive Board members amounted to nil for 2013, nil
for 2012 and EUR 135,000 for 2011. In 2013 it was ruled by Court
to apply a 100% pension indexation for all former Dutch employees
associated in the ING Pension Fund, including former Executive
Board members. This did not result in additional costs.
Long-term incentives awarded in previous years
In 2013 no long-term incentives were awarded to the Executive
Board members. Until 2010, the long-term incentive plan (LTIP) was
in place at INGand includes stock options and performance shares.
The ING stock options have a total term of ten years and a vesting
period ofthreeyears after which they can be exercised during the
remaining seven years.
Long-term Equity Ownership Performance shares were conditionally
granted. The number of ING depositary receipts that would
ultimately be granted at the end of a three-year performance
period depended on ING’s Total Shareholder Return (TSR)
performance over three years (return in the form of capital gains
and reinvested dividends that shareholders received in that period)
relative to the TSR performance of a predefined peer group.
ING’s TSR ranking within this group of companies determines the
final number of performance shares that vest at the end of the
three-year performance period. The performance shares granted in
2010 had a three-year performance period of 2010-2012 and
vested in 2013. The actual results of 133% are based upon ING’s
TSR ranking of 7th within the designated peer group. The results
were determined by an independent third party. ING’s external
auditor has reviewed the performed calculations.
Performance shares are shares conditionally granted, with the final
shares awarded in three years (tiered) based on ING’s performance
at the end of each performance cycle. The ultimate value of the
performance share is based on ING Group’s stock price at the
vesting date. Deferred shares are shares of which the ultimate value
of each deferred share will be based on ING Group’s stock price at
the vesting date.
Total direct compensation of the individual members of the Executive Board
amounts in thousands of euros
2013 2012 2011
amount number of shares amount
number of
shares amount
number of
shares
Ralph Hamers (1)
Base salary 794 - -
Variable remuneration in cash 0 0 - - - -
Variable remuneration in stock 0 0 - - - -
Jan Hommen (2)
Base salary 1,015 1,353 1,353
Variable remuneration in cash 0 0 0 0 0 0
Variable remuneration in stock 0 0 0 0 0 0
Patrick Flynn
Base salary 750 750 750
Variable remuneration in cash 0 0 0 0 0 0
Variable remuneration in stock 0 0 0 0 0 0
Wilfred Nagel (3)
Base salary 750 469 -
Variable remuneration in cash 0 0 0 0 - -
Variable remuneration in stock 0 0 0 0 - -
(1) Ralph Hamers was appointed to the Executive Board on 13 May 2013. The figures for him reflect compensation earned in the capacity as an Executive Board
member. Thus the figure for 2013 reflects a partial year as an Executive Board member and CEO.
(2) Jan Hommen retired on 1 October 2013.
(3) Wilfred Nagel was appointed to the Executive Board on 14 May 2012. The figures for him reflect compensation earned in the capacity as an Executive Board
member. Thus the figure for 2012 reflects a partial year as an Executive Board member.
83ING Group Annual Report 2013
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information