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Information on remuneration | 12 Months Ended
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Dec. 31, 2019
Information on remuneration [Abstract] |
Disclosure of information on remuneration [Text block] | ### 27Information on remuneration #### Remuneration of the Executive Committee In 2019, the total remuneration costs relating to the members of the Executive Committee (consisting of 14 members, including the members of the Board of Management) amounted to EUR 30.0 million (2018: EUR 26.8 million; 2017: EUR 25.8 million) consisting of the elements in the following table. Philips Group Remuneration costs of the Executive Committee1) in EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Base salary/Base compensation | 8,089,063 | 8,370,406 | 9,241,364
Annual incentive2) | 6,345,576 | 5,651,996 | 5,566,763
Performance shares3)4) | 6,371,297 | 8,896,369 | 11,143,320
Restricted share rights3) | 885,343 | 492,237 | 168,404
Pension allowances5) | 1,886,963 | 1,919,839 | 2,076,834
Pension scheme costs | 408,695 | 411,028 | 440,003
Other compensation6) | 1,861,803 | 1,013,128 | 1,331,990
Total | 25,848,740 | 26,755,003 | 29,968,678
1)The Executive Committee consisted of 14 members as per December 31, 2019 (2018: 13 members; 2017: 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 and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date 4)For 2019, a release of EUR 0 (2018: EUR 1,740,520; 2017: EUR 2,469,670) 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 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 At December 31, 2019, the members of the Executive Committee (including the members of the Board of Management) held 291,520 (2018: 333,670; 2017: 541,400) stock options at a weighted average exercise price of EUR 18.61 (2018: EUR 18.99; 2017: EUR 19.82). #### Remuneration of the Board of Management In 2019, the total remuneration costs relating to the members of the Board of Management amounted to EUR 9.7 million (2018: EUR 9.8 million; 2017: EUR 7.8 million), see table below. Philips Group Remuneration costs of individual members of the Board of Management in EUR 2017 - 2019
| base compensation/salary | annual incentive1) | performance shares2) | restricted share rights2) | pension allowances3) | pension schemecosts | other compensation | total costs
--- | --- | --- | --- | --- | --- | --- | --- | ---
2019 |  |  |  |  |  |  |  |
F.A. van Houten | 1,295,000 | 1,091,800 | 2,235,166 | - | 559,052 | 26,380 | 52,713 | 5,260,111
A. Bhattacharya | 770,000 | 517,472 | 995,483 | - | 230,006 | 26,380 | 63,265 | 2,602,606
M.J. van Ginneken | 571,250 | 335,685 | 713,815 | - | 171,018 | 26,380 | 38,278 | 1,856,426
| 2,636,250 | 1,944,957 | 3,944,464 | - | 960,076 | 79,140 | 154,256 | 9,719,143
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
M.J. van Ginneken | 91,667 | 69,168 | 100,022 | 75 | 27,796 | 4,213 | 13,120 | 306,061
P.A.J. Nota | 606,250 | 429,886 | (1,203,992) | (188) | 236,208 | 21,065 | 63,576 | 152,805
| 2,590,417 | 2,322,612 | 1,540,703 | 4,809 | 1,012,075 | 75,834 | 261,667 | 7,808,117
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 2019 Annual Incentive 2)Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect 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 Total remuneration costs in 2019. The accumulated annual pension entitlements and the pension costs of individual members of the Board of Management are as follows: Philips Group Accumulated annual pension entitlements and pension-related costs in EUR unless otherwise stated 2019
| age at December 31, 2019 | accumulated annual pension as of December 31, 2019 | total pension related costs
--- | --- | --- | ---
F.A. van Houten | 59 | 325,561 | 585,432
A. Bhattacharya | 58 | 31,338 | 256,386
M.J. van Ginneken | 46 | 44,169 | 197,398
Pension costs |  |  | 1,039,216
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 2019, 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 1.2 million (2018: EUR 1.1 million; 2017: EUR 951 thousand. Former members received no remuneration. The members of the Supervisory Board do not receive any share-based remuneration. Therefore, at December 31, 2019 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: Philips Group Remuneration of the Supervisory Board in EUR 2017 - 2019
| membership | committees | other compensation1) | total
--- | --- | --- | --- | ---
20192) |  |  |  |
J. van der Veer | 155,000 | 35,000 | 7,000 | 197,000
C.A. Poon | 115,000 | 50,167 | 22,000 | 187,167
H.N.F.M. von Prondzynski | 33,333 | 16,333 | 5,667 | 55,333
J.P. Tai | 25,000 | 10,250 | 5,500 | 40,750
N. Dhawan | 100,000 | 18,000 | 27,000 | 145,000
O. Gadiesh | 100,000 | 19,833 | 12,000 | 131,833
D.E.I. Pyott | 100,000 | 41,500 | 17,000 | 158,500
P.A.M. Stoffels | 100,000 | - | 14,500 | 114,500
A.M. Harrison | 100,000 | 9,333 | 12,000 | 121,333
M.E. Doherty | 41,667 | 1,500 | 8,333 | 51,500
| 870,000 | 201,917 | 131,000 | 1,202,917
20182) |  |  |  |
J. van der Veer | 140,000 | 27,500 | 12,000 | 179,500
C.A. Poon | 96,250 | 36,625 | 22,000 | 154,875
H.N.F.M. 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.M. 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
20172) |  |  |  |
J. van der Veer | 135,000 | 25,000 | 7,000 | 167,000
C.A. Poon | 90,000 | 32,500 | 17,000 | 139,500
H.N.F.M. 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
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 members1) in number of shares 2019
| December 31, 2018 | December 31, 2019
--- | --- | ---
J. van der Veer | 18,366 | 18,366
F.A. van Houten | 292,302 | 347,565
A. Bhattacharya | 66,794 | 90,083
M.J. van Ginneken | 47,856 | 67,600
1)Reference date for board membership is December 31, 2019.

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