Remuneration Report 2007

The Selection, Appointment and Remuneration Committee consists of Mr H. Zwarts (Chairman), Mrs J.B. Irik and Mr W. Meijer. Among the matters relating to remuneration discussed by the Committee in 2007 were: the adoption of the variable remuneration for 2006, the short-term variable remuneration objectives for 2007, the long-term variable remuneration objectives for 2007-2009, as well as the discussion regarding the progress made in relation to the various objectives and the development of the remuneration. 

In addition, the Selection, Appointment and Remuneration Committee discussed the progress in the management development programme and the retention of the top of the organisation, as well as the appointment of quartermasters for the organisational units to be newly set up.

The Selection, Appointment and Remuneration Committee periodically assesses the remuneration policy and, where necessary, makes a proposal to the Supervisory Board for material adjustment of this policy which is then submitted for adoption to the General Meeting of Shareholders.

In order to determine the development of the remuneration of the Chairman and members of the Management Board, market data are used as one of the sources of information; external advice is also sought in this connection.

In accordance with the agreements made in the General Meeting of Shareholders of 25 April 2005, intensive consultation took place in 2006 with representatives of shareholders. This consultation led to the adjustment and adoption of the remuneration policy in the General Meeting of Shareholders of 24 April 2006. This consultation is continued in 2007.

The remuneration report consists of four parts:

• A summary of Nuon’s remuneration policy;
• A description of the execution of the remuneration policy in 2007, also in a comparison with 2006;
• A summary of the remuneration of the members of the Supervisory Board;
• A preview of 2008 and beyond.

Nuon’s remuneration policy and remuneration report comply with the Dutch Corporate Governance Code. Where this is not the case, the departures are highlighted and explained.