Information on remuneration

Notes

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Remuneration of the Board of Management

Remuneration and pension charges relating to the members of the Board of Management amounted to EUR 6,992,350 (2007: EUR 8,732,378, 2006: EUR 9,090,403). In 2008, an additional amount of EUR 619,252 (2007: EUR 739,861, 2006: EUR 645,123) was awarded in the form of other compensation. When pension rights are granted to members of the Board of Management, necessary payments (if insured) and all necessary provisions are made in accordance with the applicable accounting principles. In 2008, no (additional) pension benefits were granted to former members of the Board of Management.

In 2008, the present members of the Board of Management were granted 259,218 stock options (2007: 318,132 stock options, 2006: 198,027 stock options) and 86,406 restricted share rights (2007: 106,044 restricted share rights; 2006: 66,009 restricted share rights).

At year-end 2008, the members of the Board of Management held 1,805,672 stock options (year-end 2007: 1,771,097; year-end 2006: 1,355,765) at a weighted average exercise price of EUR 27.31 (year-end 2007: EUR 28.05; year-end 2006: EUR 27.70).

Please refer to Report of the Remuneration Committee: Introduction for further information.

Remuneration of individual members of the Board of Management in euros
	salary	annual incentive ¹⁾	special payment ²⁾	total cash	other compensation ³⁾

2008
G.J. Kleisterlee	1,100,000	490,512	−	1,590,512	324,346
P-J. Sivignon	687,500	217,386	−	904,886	8,738
G.H.A. Dutiné	618,750	200,664	−	819,414	135,673
T.W.H.P. van Deursen ⁴⁾	150,000	267,984	−	417,984	20,068
R.S. Provoost	620,000	247,607	−	867,607	26,406
A. Ragnetti	613,750	329,571	−	943,321	37,665
S.H. Rusckowski ⁵⁾	620,000	103,164	−	723,164	66,356
	4,410,000	1,856,888	−	6,266,888	619,252


2007
G.J. Kleisterlee	1,087,500	1,186,618	−	2,274,118	304,047
P-J. Sivignon	637,500	508,550	−	1,146,050	25,218
G.H.A. Dutiné	587,500	513,691	−	1,101,191	140,116
A. Huijser ^{6, #)}	−	140,098	−	140,098	−
T.W.H.P. van Deursen	587,500	380,190	−	967,690	73,701
J.A. Karvinen ⁷⁾	−	382,579	−	382,579	−
R.S. Provoost	562,500	335,551	−	898,051	22,007
A. Ragnetti	531,250	354,893	−	886,143	37,031
S.H. Rusckowski ⁸⁾	431,250	−	−	431,250	137,741
	4,425,000	3,802,170	−	8,227,170	739,861

2006
G.J. Kleisterlee	1,042,500	1,150,560	350,000	2,543,060	300,064
J.H.M. Hommen ⁹⁾	−	323,018	−	323,018	−
P-J. Sivignon ¹⁰⁾	568,750	219,191	300,000	1,087,941	60,671
G.H.A. Dutiné	540,750	433,998	−	974,748	99,373
A. Huijser ¹¹⁾	150,000	507,600	−	657,600	6,835
T.W.H.P. van Deursen ¹²⁾	412,500	−	−	412,500	28,265
F.A. van Houten ¹³⁾	262,500	−	400,000	1,174,375	21,602
J.A. Karvinen ¹⁴⁾	400,000	−	−	400,000	79,710
R.S. Provoost ¹⁵⁾	393,750	−	−	393,750	34,632
A. Ragnetti ¹⁵⁾	356,250	−	−	356,250	13,971
	4,127,000	2,634,367	1,050,000	8,323,242	645,123

¹⁾	The annual incentives paid are related to the level of performance achieved in the previous year.
²⁾	Relating to the divestment of the Semiconductors division.
³⁾	The stated amounts concern (share of) allowances to members of the Board of Management that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities in the Netherlands is the starting point for the value stated.
⁴⁾	Salary amount and amount under under 'other compensation' relates to period January 1 - March 31, 2008.
⁵⁾	Annual incentive figure relates to period of board membership April 1 - December 31, 2007.
⁶⁾	Annual incentive figure relates to period January 1 - March 31, 2006.
⁷⁾	Annual incentive figure relates to period April 1 - November 30, 2006.
⁸⁾	The salary amount as well as the amount under 'other compensation' relates to the period April 1 - December 31, 2007. The annual incentive paid out relates to the period before board membership and is not stated.
⁹⁾	Annual incentive amount relates to period January 1 - June 15, 2005.
¹⁰⁾	Annual incentive amount relates to period June 15 - December 31, 2005.
¹¹⁾	The salary amount relates to the period January 1 - March 31, 2006.
¹²⁾	The salary amount as well as the amount under 'other compensation' relates to the period April 1 - December 31, 2006. The annual incentive paid out relates to the period before board membership and therefore is not stated.
¹³⁾	The salary amount as well as the amount under 'other compensation' relates to the period April 1 - September 29, 2006. The total cash amount includes the salary over the period April 1 - September 29, 2006, the special Semiconductors payment, the annual incentive of EUR 354,375 over the period April 1 - September 29, 2006 and pursuant to the Semiconductors transaction retention scheme an amount of EUR 157,500.
¹⁴⁾	The salary amount as well as the amount under 'other compensation' relates to the period April 1 - November 30, 2006. The annual incentive paid out relates to the period before board membership and therefore is not stated.
¹⁵⁾	The salary amount as well as the amount under 'other compensation' relates to the period April 1 - December 31, 2006. The annual incentive paid out relates to the period before board membership and therefore is not stated.

The tables below give an overview of the interests of the members of the Board of Management under the restricted share rights plans and the stock option plans of the Company:

Number of restricted share rights
	as of Jan. 1, 2008	awarded during 2008	released during 2008	as of Dec. 31, 2008 ²⁾	potential premium shares

G.J. Kleisterlee	40,644	22,401	18,882	44,163	19,121
P-J. Sivignon	25,191	12,801	11,990	26,002	9,762
G.H.A. Dutiné	23,424	12,801	11,290	24,935	11,546
R.S. Provoost	22,535 ¹⁾	12,801	10,401	24,935	10,653
A. Ragnetti	21,867 ¹⁾	12,801	10,067	24,601	9,814
S.H. Rusckowski	26,101 ¹⁾	12,801	12,567	26,335	11,678
	159,762	86,406	75,197	170,971	72,574

¹⁾	Partly awarded before date of appointment as a member of the Board of Management
²⁾	Excluding premium shares

Stock options

	as of Jan. 1, 2008	granted during 2008	exercised during 2008	as of Dec. 31, 2008	exercise price (in euros)	share (closing) price on exercise date	expiry date

G.J. Kleisterlee	52,500 ¹⁾	-	-	52,500 ¹⁾	42.24 ³⁾	-	17.02.2010
	105,000	-	-	105,000	37.60	-	08.02.2011
	115,200	-	-	115,200	30.17	-	07.02.2012
	52,803	-	-	52,803	16.77	-	15.04.2013
	48,006	-	-	48,006	24.13	-	13.04.2014
	48,006	-	-	48,006	19.41	-	18.04.2015
	48,006	-	-	48,006	26.28	-	18.04.2016
	73,926	-	-	73,926	30.96	-	16.04.2017
	-	67,203	-	67,203	23.11	-	14.04.2018

P-J. Sivignon	32,004	-	-	32,004	22.07	-	18.07.2015
	33,003	-	-	33,003	26.28	-	18.04.2016
	42,903	-	-	42,903	30.96	-	16.04.2017
	-	38,403	-	38,403	23.11	-	14.04.2018

G.H.A. Dutiné	124,800 ^1,2)	-	-	124,800 ^1,2)	30.17	-	07.02.2012
	35,208	-	-	35,208	16.77	-	15.04.2013
	32,004	-	-	32,004	24.13	-	13.04.2014
	32,004	-	-	32,004	19.41	-	18.04.2015
	30,006	-	-	30,006	26.28	-	18.04.2016
	39,600	-	-	39,600	30.96	-	16.04.2017
	-	38,403	-	38,403	23.11	-	14.04.2018

R.S. Provoost	56,875 ^1,2)	-	-	56,875 ^1,2)	42.90	-	17.10.2010
	29,750 ¹⁾	-	-	29,750 ¹⁾	37.60	-	08.02.2011
	49,200 ^1,2)	-	-	49,200 ^1,2)	30.17	-	07.02.2012
	16,250 ^1,2)	-	-	16,250 ^1,2)	34,78	-	16.04.2012
	26,406 ¹⁾	-	-	26,406 ¹⁾	16.77	-	15.04.2013
	8,667 ¹⁾	-	-	8,667 ¹⁾	22.12	-	14.10.2013
	24,003 ¹⁾	-	-	24,003 ¹⁾	24.13	-	13.04.2014
	24,003 ¹⁾	-	-	24,003 ¹⁾	19.41	-	18.04.2015
	30,006	-	-	30,006	26.28	-	18.04.2016
	39,600	-	-	39,600	30.96	-	16.04.2017
	-	38,403	-	38,403	23.11	-	14.04.2018

¹⁾	Awarded before date of appointment as a member of the board of Management
²⁾	(Partly) sign-on grant
³⁾	The Supervisory Board and the Board of Management have decided to adjust upwards the exercise price of all options granted to, but not yet exercised by, members of the Board of Management as of July 31, 2000 by EUR 0.21 per common share in connection with the 3% share reduction program effected mid-2000
⁴⁾	Awarded under the US stock option plan

Stock options

	as of Jan. 1, 2008	granted during 2008	exercised during 2008	as of Dec. 31, 2008	exercise price (in euros or USD)	share (closing) price on exercise date	expiry date

A. Ragnetti	30,000 ^1,2)	−	−	30,000	15.29	−	11.02.2013
	17,604 ¹⁾	−	−	17,604	16.77	−	15.04.2013
	18,405 ¹⁾	−	−	18,405	24.13	−	13.04.2014
	24,003 ¹⁾	−	−	24,003	19.41	−	18.04.2015
	27,000	−	−	27,000	26.28	−	18.04.2016
	39,600	−	−	39,600	30.96	−	16.04.2017
	−	38,403	-	38,403	23.11	−	14.04.2018

S.H. Rusckowski	27,000 ^1,4)	−	−	27,000 ^1,4)	$28.78	−	13.04.2014
	2,700 ^1,4)	−	−	2,700 ^1,4)	$25.43	−	27.01.2015
	31,500 ^1,4)	−	−	31,500 ^1,4)	$25.28	−	18.04.2015
	31,500 ^1,4)	−	−	31,500 ^1,4)	$32.25	−	18.04.2016
	4,500 ^1,4)	−	−	4,500 ^1,4)	$34.56	−	16.10.2016
	42,903	−	−	42,903	30.96	−	16.04.2017
	−	38,403	−	38,403	23.11	−	14.04.2018

	1,546,454	259,218		1,805,672

¹⁾	Awarded before date of appointment as a member of the Board of Management
²⁾	(Partly) sign-on grant
³⁾	The Supervisory Board and the Board of Management have decided to adjust upwards the exercise price of all options to, but not yet exercised by, members of the Board of Management as of July 31, 2000 by EUR 0.21 per common share in connection with the 3% share reduction program effected mid-2000
⁴⁾	Awarded under US stock option plan

See note (33) Share-based compensation for further information on stock options and restricted share rights.

The total pension charges of the members of the Board of Management in 2008 amount to EUR 725,462 (pension charge in 2007: EUR 505,208; 2006: EUR 767,161).

The accumulated annual pension entitlements and the pension costs of individual members of the Board of Management are as follows (in euros):


	age at December 31, 2008	accumulated annual pension as of December 31, 2008 ¹⁾	pension costs ²⁾

G.J. Kleisterlee ³⁾	62	719,769	(314,893)
P-J. Sivignon	52	28,477	250,951
G.H.A. Dutiné	56	87,864	192,153
R.S. Provoost	49	66,233	192,003
A. Ragnetti	48	38,598	202,281
S.H. Rusckowski	51	13,030	235,852
			758,347 ⁴⁾

¹⁾	Under final pay or average pay plan
²⁾	Including costs related to employer contribution in defined-contribution pension plan
³⁾	As Mr Kleisterlee was born before January 1, 1950, he continued to be a member of the final pay plan with a pensionable age of 60. No further accrual takes place
⁴⁾	Mr Van Deursen for the period January - April 2008 not included: EUR (32,885)

Remuneration of the Supervisory Board

The remuneration of the members of the Supervisory Board amounted to EUR 851,250 (2007: EUR 540,000, 2006: EUR 494,500); former members received no remuneration.

At year-end 2008, the present members of the Supervisory Board held no stock options.

The individual members of the Supervisory Board received, by virtue of the positions they held, the following remuneration (in euros):


	membership	committees	fee for inter-continental travel ¹⁾	total

2008
W. de Kleuver (Jan.-March)	55,000	5,125	−	60,125
L. Schweitzer (Jan.-March)	32,500	1,500	−	34,000
J-M. Hessels	98,750	19,125	3,000	120,875
J.M. Thompson	65,000	14,000	9,000	88,000
R. Greenbury	65,000	8,000	3,000	76,000
K.A.L.M. van Miert	65,000	10,000	3,000	78,000
C.J.A. van Lede	65,000	12,500	3,000	80,500
E. Kist	65,000	13,750	3,000	81,750
N.L. Wong	65,000	−	9,000	74,000
J.J. Schiro	65,000	14,500	3,000	82,500
H. von Prondzynski	65,000	7,500	3,000	75,500
	706,250	106,000	39,000	851,250

2007
W. de Kleuver	75,000	10,500	−	85,500
L. Schweitzer	41,000	4,500	−	45,500
J-M. Hessels	41,000	7,000	−	48,000
J.M. Thompson	41,000	9,000	−	50,000
R. Greenbury	41,000	4,500	−	45,500
K.A.L.M. van Miert	41,000	4,500	−	45,500
C.J.A. van Lede	41,000	6,000	−	47,000
E. Kist	41,000	4,500	−	45,500
N.L. Wong	41,000	−	−	41,000
J.J. Schiro	41,000	4,500	−	45,500
H. von Prondzynski (Apr.-Dec.)	41,000	−	−	41,000
	485,000	55,000	−	540,000

2006
W. de Kleuver	75,000	10,500	−	85,500
L. Schweitzer	41,000	4,500	−	45,500
J-M. Hessels	41,000	7,000	−	48,000
J.M. Thompson	41,000	4,500	−	45,500
R. Greenbury	41,000	4,500	−	45,500
K.A.L.M. van Miert	41,000	4,500	−	45,500
C.J.A. van Lede	41,000	6,000	−	47,000
E. Kist	41,000	4,500	−	45,500
N.L. Wong	41,000	−	−	41,000
J.J. Schiro	41,000	4,500	−	45,500
	444,000	50,500	−	494,500

¹⁾	The fee for intercontinental travel was approved by the General Meeting of Shareholders in 2008

Supervisory Board members’ and Board of Management members’ interests in Philips shares

Members of the Supervisory Board and of the Board of Management are not allowed to hold any interests in derivative Philips securities.

Number of shares ¹⁾
	as of December 31, 2007	as of December 31, 2008

H. von Prondzynski	430	2,930
J.M. Thompson	1,000	1,000
G.J. Kleisterlee	151,916	173,039
P-J. Sivignon	10,779	22,769
G.H.A. Dutiné	33,633	46,418
R.S. Provoost	30,198	41,495
A. Ragnetti	20,729	31,597
S.H. Rusckowski	26,584	40,125

¹⁾	Reference date for board membership is December 31, 2008

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