The board of Philips waives the bonuses for last year. This has been decided jointly by the Supervisory Board and the Executive Board. It is striking that the departed CEO Frans van Houten has not relinquished his bonuses.
Van Houten will receive a bonus of 265,000 euros. His total remuneration, including pension contribution, share bonus and other payments, amounts to 4.7 million euros. The value of the bonuses can increase significantly over the next two years. The actual size of this package will only be determined in a few years’ time.
According to the FD, Van Houten’s attitude points to the soured relationships at the top of Philips. Van Houten left last year six months before his official term expired. Trade union FNV is deeply disappointed in Van Houten. Van Houten’s decision not to give up his bonus “is three times nothing”, director Hans Wijers told the newspaper. ‘It shows no respect for the people who work at Philips.’
The decision to waive bonuses for the rest of the board came after a “very disappointing year” due to ongoing problems with the sleep apnea devices and supply chain issues, according to CEO Roy Jakobs. Last year there was a lot of criticism from shareholders of Philips’ remuneration policy, which already had problems with sleep apnea devices and supply. The company says it has learned from this and has come to its decision after discussions with shareholders.
Philips executives are normally entitled to a cash bonus, but also a bonus in shares which is valid over a longer period of time. The top of the company waives both bonuses. Jakobs, who joined in October, will also receive a basic salary of 1.2 million euros. That is less than the 1.325 million euros earned by his predecessor Van Houten.
