Executive remuneration in 2009

Fixed compensation provides members of the Executive Board with a base salary. The amount is paid each year.

 

Member

2009

2008

Change

Alexander R.  Wynaendts (CEO)

950,000

864,583

+9.9%

Jan J. Nooitgedagt (CFO)

525,000

n/a

-

Joseph B. M. Streppel(former CFO)

254,400

763,200

-

Donald J. Shepard(former CEO)

-

243,992

-

 

Mr. Wynaendts was appointed Chief Executive Officer in April 2008. His base salary was increased in 2008 to reflect his appointment as CEO. There was no further change to Mr. Wynaendts' base salary in 2009.

Mr. Nooitgedagt was appointed Chief Financial Officer in April 2009. His total salary therefore covers only the period from April to the end of December and is based on an annual salary of EUR 700,000.

Mr. Streppel stepped down as Chief Financial Officer in April 2009. The salary shown therefore covers the first four months of the year. In line with the pension arrangements for Executive Board members, Mr. Streppel is entitled to his fixed compensation until he reaches the age of 62.

Mr. Shepard retired as Chief Executive Officer and Chairman of AEGON's Executive Board in April 2008. The salary shown therefore cover the first four months of that year only.  

Variable compensation is based on the company's financial performance. Amounts paid therefore vary from year to year. Variable compensation comprises two separate elements:

  • Short-term incentive compensation, paid in cash
  • And, long-term incentive compensation, paid in the form of conditionally granted shares.

 

Three separate incentive plans reached maturity in 2009

 

Plan

Outcome

Long-term 2006

This plan was formulated under AEGON's previous Remuneration Policy and was based on a three-year period. The plan matured in 2009 and 75% of the shares and option rights vested as expected.

 

Short-term 2008

Under the terms of AEGON's Remuneration Policy, Executive Board members were not entitled to payments under this plan. This was also in line with the provisions of AEGON's capital support agreement with the Dutch State.

 

Long-term 2008

Under the terms of AEGON's Remuneration Policy, Executive Board members were not entitled to payments under this plan, in line with discussions that took place last year with the Dutch government.  

 

 

 

Executive remuneration and the financial crisis

Given the severity of the financial crisis, AEGON took a number of measures in 2009 with regard to executive remuneration. These measures followed the capital support agreement finalized with the Dutch State in December 2008, as well as other, separate discussions with the Dutch Ministry of Finance.

 

As part of these discussions, it was agreed that:

 

  • Members of AEGON's Executive Board would not be entitled to any variable compensation for the year 2009.
  • Severance payments for Executive Board members would be limited to a maximum of one year's fixed salary.
  • AEGON would develop a sustainable Remuneration Policy for members of its Executive Board aligned with new international standards.

 

In this regard, AEGON will propose a new Remuneration Policy to the company's next annual General Meeting of Shareholders, scheduled to take place in The Hague on April 29th, 2010.

 

As proposed, this new policy would link variable compensation for members of AEGON's Executive Board for the first time to sustainability objectives, as well as financial targets and other strategic and personal goals.

 

If adopted, the policy will apply retroactively from January 1, 2010.