Remuneration principles
The remuneration principles relate to the level and structure of the remuneration package for the Management Board.
Level of the remuneration packages
To meet the objectives of the remuneration policy, levels of compensation (both fixed and variable income) are set in line with levels of comparable Dutch and European companies. As part of relating levels of compensation to comparable companies, attention is given to the size of the company as a proxy to complexity. When deciding on the package size, the Supervisory Board took into consideration remuneration practices at similar companies as well as the provisions of the Corporate Governance Code.
For external reference of the size of the overall remuneration package, a specific labour market reference group has been defined. The Supervisory Board reviews this reference group periodically and updates it if and when required. Internal pay differentials are monitored as part of the benchmarking exercise.
The labour market reference group includes property investment companies that primarily focus on retail, operating in a number of European markets (pan-European strategy) and Dutch real estate companies comparable in terms of size and complexity. A significant part of the labour market reference group is listed companies operating in the property sector. The labour market reference group consisted of the following companies in 2009:
Deutsche Euroshop Mercialys
Eurocommercial Properties Q-Park
Hammerson Redevco
ING Real Estate Unibail-Rodamco
Klépierre Vastned Retail
Liberty International Wereldhave
Structure of the remuneration packages
The total remuneration of the Management Board of Corio N.V. consists of:
• Base salary
• Short-term incentive scheme
• Long-term incentive scheme
• Pension and other benefits
• Contract with a severance clause
The remuneration package aims to ensure that the company’s operational and financial performance – and through these the share price – relates to the level of compensation.
The remuneration package is based on an equal balance between fixed and variable components. Through this the company aims to offer a performance-oriented package in a balanced and controlled setting. Under normal circumstances, the long-term variable component constitutes a larger portion of variable income than the short-term component.
The Supervisory Board monitors the results of the remuneration policy and its relation to the company’s value creation, by carrying out scenario analyses, as referred to in best practice provision II.2.1 of the Dutch Corporate Governance Code.
The remuneration policy applies in all respects to the members of the Management Board with full responsibility at the holding level. For members of the Management Board with main responsibility for a country, the annual salary, short-term incentive, level of long-term incentive and pension contributions are based on the local remuneration market. The long-term incentive plan in terms of structure is equally applicable to Management Board members with country responsibility.
Financial information on the total costs of the packages for the company in 2009 can be found on page 121 of this annual report.
Source: Annual Report 2009, Chapter Overview & Strategy, page 32 (PDF, 13.679 kB)
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