Remuneration costs

The table below gives an overview of the costs incurred by the Company in the financial year in relation to the remuneration of the Board of Management. Costs related to performance shares, stock option and restricted share right grants are taken by the Company over a number of years. As a consequence, the costs mentioned below in the columns stock options and restricted share rights are the accounting cost of multi-year grants given to members of the Board of Management during their board membership.

Remuneration Board of Management 20131)
in euros
 
 
Costs in the year 2)
 
 
annual
base
salary 3)
base
salary
realized
annual
incentive
perfor-
mance
shares
stock
options
restricted
share
rights
pension
costs
other
compen-
sation
F.A. van Houten
1,100,000
1,100,000
1,081,520
402,275
218,682
190,441
468,407
75,906
R.H. Wirahadiraksa
675,000
656,250
497,745
205,713
137,926
128,856
263,451
35,732
P.A.J. Nota
625,000
618,750
561,713
190,473
182,835
146,626
253,605
68,206
1)
Reference date for board membership is December 31, 2013
2)
A crisis tax levy of 16% as imposed by the Dutch government amounts to EUR 681,596 in total . This crisis tax levy is payable by the employer and is charged over income of employees exceeding a EUR 150,000 threshold in 2013. These expenses do not form part of the remuneration costs mentioned. The costs for the once-only Accelerate! Grant are not included in the table above. See the table below
3)
Salary as of April 1, 2013

Accelerate! Grant

The members of the Board of Management received a special once-only performance grant related to the realization of the Accelerate! program and the mid-term targets of the company (CSG CAGR, EBITA and ROIC). This grant consists of performance shares and performance options. The costs related to the Accelerate! Grant to the members of the Board of Management have been fully taken in the financial year 2013. Around 450 other key employees received a similar performance grant.

Accelerate! Grant
 
number of
performance
shares
number of
performance
stock options
Costs in
euros
F.A. van Houten
55,000
55,000
1,434,933
R.H. Wirahadiraksa
38,500
38,500
1,004,453
P.A.J. Nota
38,500
38,500
1,004,453

(0)
(0)
This is an interactive electronic version of the Philips Annual Report 2013 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the full Philips Annual Report 2013. This printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2013 compared to 2012.

Earnings before interest, tax and amortization (EBITA) represents income from continuing operations excluding results attributable to non-controlling interest holders, results relating to investments in associates, income taxes, financial income and expenses, amortization and impairment on intangible assets (excluding software and capitalized development expenses). Philips believes that EBITA information makes the underlying performance of its businesses more transparent by factoring out the amortization of these intangible assets, which arises when acquisitions are consolidated. In our Annual Report on form 20-F this definition is referred to as Adjusted IFO.