2. CEO REMUNERATION IN EUROPE CEO REMUNERATION IN BELGIUM PRESS INFORMATION

3. 1 STUDY & SAMPLE

4. © Vlerick Business School ABOUT THE STUDY 4 Conducted by Vlerick’s Executive Remuneration Research Centre Yearly study Based on analysis of annual/remuneration reports Focus: Remuneration levels: total, fixed, short-term incentives, long-term incentives Remuneration structure: Proportion fixed, short-term incentives, long-term incentives Design of share-based remuneration Remuneration drivers: KPIs used in short-term incentives Importance of size, country, performance

5. © Vlerick Business School THE SAMPLE 5 650

6. © Vlerick Business School CEO REMUNERATION INSTRUMENTS Fixed remuneration Long-term incentives Short-term incentives VARIABLEVARIABLE VARIABLEVARIABLE T O T A L R E M. T O T A L R E M.

7. 2 CEO REMUNERATION IN EUROPE

8. © Vlerick Business School TOTAL CEO REMUNERATION Firm size 2012 (2007) <500 mio. €Between 500 mio. and 1 bio. € Between 1 bio. and 5 bio. € > 5 bio. € Belgium 530.000 (410.000) 860.000 (n/o) 980.000 (630.000) 1.980.000 (2.390.000) France 250.000 (380.000) 530.000 (400.000) 1.090.000 (1.490.000) 2.290.000 (3.160.000) Germany 760.000 (n/o) n/o (n/o) 1.235.000 (1.730.000) 3.100.000 (3.340.000) Netherlands 480.000 (n/o) 860.000 (830.000) 875.000 (1.330.000) 2.470.000 (2.920.000) UK n/o (n/o) n/o (n/o) 2.950.000 (n/o) 4.710.000 (n/o) 8

9. © Vlerick Business School CEO REMUNERATION STRUCTURE 9 Fixed-STI-LTI (in terms of total remuneration) 2012 Belgium70%-21%-9% France66%-23%-11% Germany41%-39%-20% Netherlands61%-22%-17%

10. © Vlerick Business School CEO REMUNERATION STRUCTURE 10 % fixed in total 20072012 Belgium59%70% France47%66% Germany33%42% Netherlands46%61%

11. © Vlerick Business School CEO REMUNERATION STRUCTURE 11 % STI in terms of fixed remuneration (total assets) BelgiumFranceGermanyNether- lands UK 0,5–1 bio. €58% n/o50%n/o 1–5 bio. €51%74%83%49%90% > 5 bio. €61%100%122%59%102%

12. © Vlerick Business School SHARE-BASED REMUNERATION 12

13. © Vlerick Business School SHARE-BASED REMUNERATION Type of share-based remuneration 20072012 Stock options – time-based vesting 27%15% Stock options – performance- based vesting 6%9% Shares – time-based vesting8%7% Shares – performance-based vesting 13%20% 13

14. 3 CEO REMUNERATION IN BELGIUM 14

15. © Vlerick Business School TOTAL CEO REMUNERATION 20072012Difference Bel-201.780.0001.610.000-11% Bel-Mid830.000740.000-12% Bel-Small410.000540.000+31%

16. © Vlerick Business School CEO REMUNERATION STRUCTURE 16 % fixed-STI-LTI20072012 Bel-2037%-26%-30%56%-20%-16% Bel-Mid50%-38%-0%65%-35%-0% Bel-Small76%-22%-0%80%-15%-0%

17. © Vlerick Business School SHARE-BASED REMUNERATION 17

18. © Vlerick Business School SHARE-BASED REMUNERATION 18 Type of share-based remuneration 20072012 Stock options – time-based vesting 44%25% Stock options – performance- based vesting 5%0% Shares – time-based vesting7%4% Stock options – performance- based vesting 2%3%

19. 4 WHAT DRIVES CEO REMUNERATION?

20. © Vlerick Business School USE OF KPIS IN SHORT-TERM INCENTIVE SYSTEMS 20

21. © Vlerick Business School WHAT DRIVES TOTAL CEO REMUNERATION?

22. © Vlerick Business School CHANGE IN STI – MATCHED SAMPLE 22