Board of Management remuneration policy

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In determining the remuneration for members of the Board of Management, Eneco takes account of its particular social position by applying the market principle and the principle of moderation.

Starting point

The Board of Management’s primary terms of employment are determined on the basis of the ‘Board of Management Remuneration Policy’ established on 20 May 2005 by the Eneco Group General Shareholders’ Meeting. The secondary or fringe benefits are stipulated in the ‘General Employment Condittions for the Board of Management’. The Board of Management remuneration must enable Eneco to attract and retain qualified management for Eneco. This requires competitive remuneration proportionate to the market for top management in the corporate sector. The desired market position for the terms of employment of Board of Management members is the median level in the General Market for Managers. Two policy principles are guiding here: the market principle and the principle of moderation.

Market and moderation principles

The market principle means that Eneco must be regarded as a normal, commercial and market-oriented company. The principle of moderation means that the Supervisory Board must implement a restrained remuneration policy with an eye on Eneco’s history, and because 100% of Eneco’s shares are held by public shareholders (municipalities). Thus the benchmark with companies of a comparable scope and complexity in the private sector is not translated fully into the current remuneration of Eneco’s managers.

From year to year the Annual Shareholders’  Meeting shares its views on remuneration of the Board of Management with the Supervisory Board, and the Supervisory Board determines the extent to which the principle of moderation can be interpreted without affecting Eneco’s employment market position. In 2013, the Supervisory Board saw no motivation for changing the current application of this principle of moderation.

Social results determinant in remuneration

In 2013 once more, the remuneration of members of the Board of Management depended on performance criteria, including socially-relevant results. The three main criteria for variable remuneration were:

  • The financial performance, including EBIT, credit rating ratios and cost reductions;
  • Safety; LTIR (Lost Time Injury Rate);
  • Implementation of the sustainability strategy, including alignment of customers and employees expressed in customer satisfaction and employee satisfaction and involvement, sustainable purchasing and sustainable investment.

Each year, Eneco publishes a remuneration report with details of the Board of Management’s remuneration on the corporate website,