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Information on remuneration | 12 Months Ended
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Dec. 31, 2018
Information on remuneration [Abstract] |
Disclosure of information on remuneration [Text block] | #### Information on remuneration ##### Remuneration of the Executive Committee In 2018, the total remuneration costs relating to the members of the Executive Committee (consisting of 13 members, including the members of the Board of Management) amounted to EUR 26,755,003 (2017: EUR 25,848,741; 2016: EUR 22,433,827) consisting of the elements in the following table. Philips Group Remuneration costs of the Executive Committee 1 in EUR 2016-2018
| 2016 | 2017 | 2018
--- | --- | --- | ---
Base salary/Base compensation | 6,388,667 | 8,089,063 | 8,370,406
Annual incentive 2 | 5,746,347 | 6,345,576 | 5,651,996
Performance shares 3 4 | 5,943,782 | 6,371,297 | 8,896,369
Stock options 3 | - | - | -
Restricted share rights 3 | 764,311 | 885,343 | 492,237
Pension allowances 5 | 1,854,129 | 1,886,963 | 1,919,839
Pension scheme costs | 180,077 | 408,695 | 411,028
Other compensation 6 | 1,556,514 | 1,861,803 | 1,013,128
1 The Executive Committee consisted of 13 members as per December 31, 2018 (2017: 12 members; 2016: 12 members) 2 The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. 3 Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date 4 For 2018, a release of EUR 1,740,520 (2017: EUR 2,469,670; 2016: EUR 0) is included due to non-vesting of performance shares 5 Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 6 The stated amounts mainly concern (share of) allowances to members of the Board of Management that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated At December 31, 2018, the members of the Executive Committee (including the members of the Board of Management) held 333,670 (2017: 541,400; 2016: 750,631) stock options at a weighted average exercise price of EUR 18.99 (2017: EUR 19.82; 2016: EUR 21.17). ##### Remuneration of the Board of Management In 2018, the total remuneration costs relating to the members of the Board of Management amounted to EUR 9,848,153 (2017: EUR 7,808,117; 2016: EUR 8,904,859), see table below. Philips Group Remuneration costs of individual members of the Board of Management in EUR 2016-2018
| base compensation/salary | annual incentive 1 | performance shares 2 | stock options 2 | restricted share rights 2 | pension allowances 3 | pension schemecosts | other compensation | total costs
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
2018 |  |  |  |  |  |  |  |  |
F.A. van Houten | 1,205,000 | 1,264,286 | 2,319,460 | - | 588 | 537,181 | 25,708 | 39,042 | 5,391,265
A. Bhattacharya | 718,750 | 637,536 | 942,220 | - | 129 | 217,823 | 25,708 | 53,522 | 2,595,688
M.J. van Ginneken | 557,500 | 362,611 | 711,806 | - | 66 | 168,210 | 25,708 | 35,299 | 1,861,200
| 2,481,250 | 2,264,433 | 3,973,486 | - | 783 | 923,214 | 77,124 | 127,863 | 9,848,153
2017 |  |  |  |  |  |  |  |  |
F.A. van Houten | 1,205,000 | 1,270,166 | 1,975,277 | - | 4,034 | 537,621 | 25,278 | 84,053 | 5,101,429
A. Bhattacharya | 687,500 | 553,392 | 669,396 | - | 888 | 210,450 | 25,278 | 100,918 | 2,247,822
P.A.J. Nota | 606,250 | 429,886 | (1,203,992) | - | (188) | 236,208 | 21,065 | 63,576 | 152,805
M.J. van Ginneken | 91,667 | 69,168 | 100,022 | - | 75 | 27,796 | 4,213 | 13,120 | 306,061
| 2,590,417 | 2,322,612 | 1,540,703 | - | 4,809 | 1,012,075 | 75,834 | 261,667 | 7,808,117
2016 |  |  |  |  |  |  |  |  |
F.A. van Houten | 1,197,500 | 1,354,227 | 1,423,538 | - | 12,041 | 536,195 | 24,838 | 126,703 | 4,675,042
A. Bhattacharya | 650,000 | 540,072 | 362,758 | - | 3,341 | 201,524 | 24,838 | 73,642 | 1,856,175
P.A.J. Nota | 702,500 | 619,745 | 683,101 | - | 9,251 | 277,649 | 24,838 | 56,558 | 2,373,642
| 2,550,000 | 2,514,044 | 2,469,397 | - | 24,633 | 1,015,368 | 74,514 | 256,903 | 8,904,859
1 The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2018 Annual Incentive 2 Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date 3 The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. For further information on remuneration costs, see Remuneration costs. The tables below give an overview of the performance share plans and the stock option plans of the Company, held by the members of the Board of Management: Philips Group Number of performance shares (holdings) in number of shares 2018
| January 1, 2018 | awarded 2018 | awarded dividend shares 2018 | realized 2018 | December 31, 2018 | vesting date
--- | --- | --- | --- | --- | --- | ---
F.A. van Houten | 60,112 | - | - | 100,207 | - | 05.05.2018
| 62,880 | - | 1,423 | - | 64,303 | 04.29.2019
| 74,878 | - | 1,693 | - | 76,571 | 05.11.2020
| - | 69,005 | 1,561 | - | 70,566 | 04.27.2021
A. Bhattacharya | 12,790 1 | - | - | 21,312 | - | 05.05.2018
| 28,265 1 | - | 640 | - | 28,905 | 04.29.2019
| 32,623 | - | 738 | - | 33,361 | 05.11.2020
| - | 31,138 | 704 | - | 31,842 | 04.27.2021
M.J. van Ginneken | 19,185 1 | - | - | 31,981 | - | 05.05.2018
| 22,243 1 | - | 503 | - | 22,746 | 04.29.2019
| 19,030 1 | - | 431 | - | 19,461 | 05.11.2020
| - | 24,052 | 544 | - | 24,596 | 04.27.2021
Performance shares (holdings) | 332,006 | 124,195 | 8,237 | 153,500 | 372,351 |
1 Awarded before date of appointment as a member of the Board of Management At December 31, 2018, the members of the Board of Management held 333,670 stock options (2017: 333,670; 2016: 476,200) at a weighted average exercise price of EUR 18.99 (2017: EUR 18.99; 2016: EUR 19.47). Philips Group Stock options (holdings) number of shares 2018
| January, 1 2018 | granted | exercised | expired | December 31, 2018 | grant price (in euros) | share (closing) price on exercise date | expiry date
--- | --- | --- | --- | --- | --- | --- | --- | ---
F.A. van Houten | 20,400 | − | − | − | 20,400 | 22.88 | − | 10.18.2020
| 75,000 | − | − | − | 75,000 | 20.9 | − | 04.18.2021
| 75,000 | − | − | − | 75,000 | 14.82 | − | 04.23.2022
| 55,000 | − | − | − | 55,000 | 22.43 | − | 01.29.2023
A. Bhattacharya | 16,500 | − | − | − | 16,500 | 22.88 | − | 10.18.2020
| 16,500 | − | − | − | 16,500 | 20.9 | − | 04.18.2021
| 20,000 | − | − | − | 20,000 | 15.24 | − | 01.30.2022
| 16,500 | − | − | − | 16,500 | 14.82 | − | 04.23.2022
M.J. van Ginneken | 5,250 | − | − | − | 5,250 | 12.63 | − | 04.14.2019
| 6,720 | − | − | − | 6,720 | 24.9 | − | 04.19.2020
| 8,400 | − | − | − | 8,400 | 20.9 | − | 04.18.2021
| 10,000 | − | − | − | 10,000 | 15.24 | − | 01.30.2022
| 8,400 | − | − | − | 8,400 | 14.82 | − | 04.23.2022
Stock options (holdings) | 333,670 | − | − | − | 333,670 |  | − |
See Notes for further information on performance shares and stock options as well 2018 Long-Term Incentive Plan. The accumulated annual pension entitlements and the pension costs of individual members of the Board of Management are as follows (in EUR): Philips Group Accumulated annual pension entitlements and pension-related costs in EUR 2018
| age at December 31, 2018 | accumulated annual pension as of December 31, 2018 | total pension related costs
--- | --- | --- | ---
F.A. van Houten | 58 | 298,470 | 562,889
A. Bhattacharya | 57 | 27,383 | 243,531
M.J. van Ginneken | 45 | 39,552 | 193,918
Pension costs |  |  | 1,000,338
When pension rights are granted to members of the Board of Management, necessary payments (if insured) and all necessary provisions are made in accordance with the applicable accounting principles. In 2018, no (additional) pension benefits were granted to former members of the Board of Management. ##### Remuneration of the Supervisory Board The remuneration of the members of the Supervisory Board amounted to EUR 1,088,375 (2017: EUR 950,500; 2016: EUR 1,037,209). Former members received no remuneration. At December 31, 2018 the members of the Supervisory Board held no stock options, performance shares or restricted shares. The individual members of the Supervisory Board received, by virtue of the positions they held, the following remuneration (in EUR): Philips Group Remuneration of the Supervisory Board in EUR 2016-2018
| membership | committees | other compensation 1 | total
--- | --- | --- | --- | ---
2018 2 |  |  |  |
J.A. van der Veer | 140,000 | 27,500 | 12,000 | 179,500
C. Poon | 96,250 | 36,625 | 22,000 | 154,875
H. von Prondzynski | 85,000 | 36,625 | 14,500 | 136,125
J.P. Tai | 85,000 | 34,625 | 22,000 | 141,625
N. Dhawan | 85,000 | 14,250 | 24,500 | 123,750
O. Gadiesh | 85,000 | 14,250 | 22,000 | 121,250
D.E.I. Pyott | 85,000 | 25,250 | 32,000 | 142,250
P.A. Stoffels | 38,333 | - | 8,333 | 46,667
A.M. Harrison | 31,667 | - | 10,667 | 42,333
| 731,250 | 189,125 | 168,000 | 1,088,375
2017 2 |  |  |  |
J.A. van der Veer | 135,000 | 25,000 | 7,000 | 167,000
C. Poon | 90,000 | 32,500 | 17,000 | 139,500
H. von Prondzynski | 80,000 | 32,500 | 19,500 | 132,000
J.P. Tai | 80,000 | 32,500 | 32,000 | 144,500
N. Dhawan | 80,000 | 13,000 | 27,000 | 120,000
O. Gadiesh | 80,000 | 13,000 | 19,500 | 112,500
D.E.I. Pyott | 80,000 | 23,000 | 32,000 | 135,000
| 625,000 | 171,500 | 154,000 | 950,500
2016 2 |  |  |  |
J.A. van der Veer | 135,000 | 26,667 | 7,000 | 168,667
C. Poon | 90,000 | 32,500 | 22,000 | 144,500
C.J.A. van Lede (Jan.-May) | 33,333 | 4,375 | 2,000 | 39,708
E. Kist (Jan.-May) | 40,000 | 4,167 | 2,000 | 46,167
H. von Prondzynski | 80,000 | 25,000 | 19,500 | 124,500
J.P. Tai | 80,000 | 34,167 | 32,000 | 146,167
N. Dhawan | 80,000 | 13,000 | 27,000 | 120,000
O. Gadiesh | 80,000 | 13,000 | 19,500 | 112,500
D.E.I. Pyott | 80,000 | 23,000 | 32,000 | 135,000
| 698,333 | 175,876 | 163,000 | 1,037,209
1 The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 under the Philips product arrangement 2 As of 2013, part of the remuneration of members of the Supervisory Board living in the Netherlands is subject to VAT. The amounts mentioned in this table are excluding VAT ##### Supervisory Board members’ and Board of Management members’ interests in Philips shares Members of the Supervisory Board and of the Executive Committee are prohibited from writing call and put options or similar derivatives of Philips securities. Philips Group Shares held by Board members 1 in number of shares 2018
| December 31, 2017 | December 31, 2018
--- | --- | ---
J. van der Veer | 18,366 | 18,366
H. von Prondzynski | 3,851 | 3,937
J.P. Tai | 3,844 | 3,844
F.A. van Houten | 233,119 | 292,302
A. Bhattacharya | 53,974 | 66,794
M.J. van Ginneken | 30,246 | 47,856
1 Reference date for board membership is December 31, 2018.

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