The Supervisory Board last year held extensive discussions on the Dutch central bank's (DNB) Regeling Beheerst Beloningsbeleid Wft 2011 (regulation on sound remuneration policy). It found that although FMO complies with the substance of this regulation, which took effect at the beginning of 2011, administrative adjustments were necessary to make its form fulfill DNB requirements.
FMO has a bonus system for the members of the Management Board;
the bonus is linked to financial and non-financial targets and
cannot exceed 25% of the fixed salary.
The Supervisory Board proposes to the General Meeting of Shareholders to include personal targets for the Management Board.
The Supervisory Board also looked at remuneration policy for the rest of the FMO workforce. FMO has no regular bonus system for its employees but has a relatively modest level of discretionary compensation, at the discretion of the Management Board.
In addition, the Supervisory Board checked whether total compensation levels were in step with a peer group. The conclusion was that FMO's remuneration policy is adequate but not excessive.