Remuneration Report 2016 Remuneration 016 2 Report

REMUNERATION REPORT 2016 REMUNERATION 016 2 REPORT

REMUNERATION REPORT 2016 — BOSKALIS 1 CONTENTS TABLE OF 9 7 5 3 REMUNERATION POLICY SUPERVISORY BOARD IN 2016 REMUNERATION POLICY APPLICATION OF MANAGEMENT FOR THEBOARDOF REMUNERATION POLICY INTRODUCTION

2 REMUNERATION REPORT 2016 — BOSKALIS REMUNERATION REPORT 2016 — BOSKALIS 3 INTRODUCTION advice tothemembersofBoardManagement. thatthisremunerationadviserdoesnotprovide ascertained ofanindependentremunerationadviserandhas services The RemunerationCommitteeregularlyavailsitselfofthe a member. Mr. Van Woudenberg andMr. aschairman Niggebrugge as The RemunerationCommitteeconsistsoftwomembers,with MEMBERS OFTHEREMUNERATION COMMITTEE thefollowingduties: The RemunerationCommitteeperforms THE REMUNERATION COMMITTEE DUTIES ANDRESPONSIBILITIESOF Board. policy pursued, subjecttoadoptionbythe Supervisory ontheremuneration Compiling the remuneration report Shareholders). remuneration policyadopted bytheGeneralMeetingof Board ofManagement(thisin accordancewiththe regard totheremunerationof individualmembersofthe Boardwith proposalstotheSupervisory Putting forward necessary. still up-to-dateandproposingpolicyadjustmentswhere Investigating whethertheadoptedremunerationpolicyis approval totheGeneralMeetingofShareholders. Board ofManagement.Thepolicyissubmittedfor regard totheremunerationpolicybepursuedfor Boardwith aproposaltotheSupervisory Putting forward

Subsequently theunconditionalindexationwasabolishedas approved bytheWorks CouncilinDecember2016. This amendmentandtheassociatedcompensationwas amendment hasbeenmadetotheindexationarrangement. the balancesheet.To mitigatetheseundesirableeffects,an effectsonthestatementofprofitorlossand disproportionate establishes thepremium.Thisresultedinundesirableand compared tothemethodinwhichPGBcalculatesand rate anddeviationsinthecalculationofpensionliability profit orlossunderIFRSduetofluctuationsinthediscount to highvolatilityinthepensionliabilitiesstatementof However, thisdefinedunconditionalpensionindexationled equal totheannualgeneralwagelevelincreaseatBoskalis. of theBoardManagement.Thelevelindexationwas This unconditionalindexationisalsoapplicableformembers thatwereemployedon31December2014. participants fund, includesanunconditionalindexationforallBoskalis The Boskalispensionplan,managedbythePGB CHANGES TOPENSIONPLAN Remuneration Committeeincluded: During theyearunderreviewactivitiesof Board. Committee werepresentedtotheentireSupervisory andfindingsofthemeetingsRemuneration Reports meetings. The Committeealsoheldregularconsultationsoutsidethese with bothmembershavingattendedeachofthemeetings. The RemunerationCommitteemettwiceduring2016, ACTIVITIES DURING2016 and solelydependentonthecoverageratio 2017,pensionindexationisconditional As of1January per 31December2016. performing scenarioanalyses. performing developments intheNetherlandsandinternationally; staying abreastofthelatestcorporategovernance policy forseniormanagementintheDutchmarket; itselfofdevelopmentssurroundingremuneration informing

* differences inbothvariableremunerationelements,the revealedthese Despite thefactthatremunerationsurvey variableelement. alowerlong-term element andinparticular variable reference group.Thiswasduetoalowershort-term Management wasbelowthemedianforlabormarket remuneration packageofthemembersBoard However, concludedthattheoveralldirect thesurvey salary. Board ofManagementwerereceivinganappropriatebasic group*. Itconcludedatthattimethemembersof compared totheremunerationoflabormarketpeer remuneration forthemembersofBoardManagement in2015consideredthe performed The remunerationsurvey AGENDA FOR2017 pension rightsasof31December2016. PGB thatallowsforaone-off5%increaseinaccrued conditional indexation,Boskalishasprovidedanamountto To compensateforthechangefromunconditionalto financed byPGBpensionfundonly. financial positionofPGB.Futureindexationwillbe remuneration policy. and thepossibleimplicationsthesemayhaveforcurrent remuneration marketaswelloftherelevantregulations abreast ofthedevelopmentsinnationalandinternational In 2017theRemunerationCommitteewillalsoseektostay market developmentsandcircumstances. will re-evaluatetheprevailingpolicyinlightofcurrent market environment.In2017theRemunerationCommittee the currentremunerationpolicyinlightofchanging Remuneration Committeeproposedin2015nottochange Arcadis, Vopak, Industries,OCI,KPNandTKHGroup. Aalberts USG People,SBMOffshore,RELXGroup,PostNL,Wolters Kluwer, The peergroupdefinedin2015consistsofBAM,DSM,Fugro,

4 REMUNERATION REPORT 2016 — BOSKALIS REMUNERATION REPORT 2016 — BOSKALIS Remuneration policy for the Board of Management 5 Variable Fixed remuneration Type of REMUNERATION PACKAGE FORMEMBERSOFTHEBOARDMANAGEMENT measures). performance (including pay-outlevelsand–whereapplicable package formembersoftheBoardManagement oftheremuneration The tablebelowprovidesanoverview ELEMENTS OFREMUNERATION Boskalis website(www.boskalis.com). The fulltextoftheremunerationpolicycanbefoundon consideration oftheriskstocompany. andnon-financialindicatorswithdue performance included thedevelopmentofresults,Boskalisshareprice in determin scenarioanalyses.Otherfactorstakenintoaccount performing board members fortheremunerationofindividual andlongterm) (short potential outcomesofthevariableremunerationelements ratios ofmanagementpositionswasinbalanceandthat and executingtheremunerationpolicy thatindefining The RemunerationCommitteeascertained well asthe‘widerenvironment.’ the interestsofBoskalis’shareholders,clients,employeesas orientationandcontinuitytakeintoaccount on long-term the strategyandcorevaluesofBoskalis,whicharecentered 2011.Theremunerationpolicyisconsistentwith 21 January was adoptedbytheGeneralMeetingofShareholderson The remunerationpolicyfortheBoardofManagement THE BOARDOFMANAGEMENT REMUNERATION POLICYFOR

ing theamountandstructureofremuneration were analyzed and in part determined by determined were analyzedandinpart D. Long-term element D. Long-term element C. Short-term B. Pensionplan (xEUR1,000) A. Basicsalary Element ofremuneration - Realizingcorporate policy - measured: Performance Period: - 50%individualtargets - 50%full-yearnetresult measure: Performance Period: — Period: Performance period&measures Share priceperformance 3years 1year 2016

individual performance, with payment of the short-term withpayment oftheshort-term individual performance, Boardsetstargetsforfull-yearnetresultand The Supervisory C –SHORT-TERM VARIABLE ELEMENT fiscal capofEUR101,519.Theretirementageis67. schemewitha averageearnings indexed non-contributory pension fund.Pensionaccrualisbasedonaconditionally the Boskalispensionscheme,whichisadministeredbyPGB in The membersoftheBoardManagementparticipate B –PENSIONPLAN advisor.external policy andcheckedperiodicallyusingdataobtainedbyan labor marketpeergroupinaccordancewiththeremuneration basedonthe isdetermined The amountofthebasicsalary A –BASICSALARY commercial achievements. strengthening ofthedivisionalstructureandspecific realization ofthefleetrationalizationplan,further objectives asdefinedfor2016.Examplesincludethe Boskalis’ strategicagendaandareinlinewiththecorporate objectivesare directlyderivedfrom Individual performance that therelevantproceduresarefollowedcorrectly. variableelementandisresponsible forensuring short-term ofthe auditorisinvolved inthefinaldetermination external ofquantity. solely interms net resultisdetermined The quantity (dependingonthespecifictarget),whilefull-year ofqualityand/or Individual targetsareassessedinterms variable elementsubjecttothesebeingmet. Maximum BoMmember: At targetBoMmember: Maximum CEO: At targetCEO: Maximum BoMmember: At targetBoMmember: Maximum CEO: At targetCEO: See tableonpage8 BoM member: CEO: Payout EUR792.8 EUR573.5 50%ofbasicsalary 50%ofbasicsalary 75%ofbasicsalary 75%ofbasicsalary

45%ofbasicsalary 45%ofbasicsalary 67.5%ofbasic salary 67.5%ofbasicsalary

followed correctly. responsible forensuringthattherelevantproceduresare variableelementandis ofthelong-term determination quantitively. auditorisinvolvedinthefinal Theexternal while thecorporateobjectivesarelargelyassessed The creationofshareholdervalueisassessedqualitatively succession planningfortheseniormanagement. No Injuries,Accidents( objectives suchasthecompany-wideimplementationof of thisinclude(post-)mergerandintegrationactivities,CSR targets weremetoverthepastthree-yearperiod.Examples by the degreetowhichstated element) isdetermined variable Establishing theultimatescore(oflong-term Management and45%fortheothermembers). oftheBoard fixed annualincomeforthechairman is establishedequaltothe‘attarget’percentages(50%of periodabasicbonusamount oftheperformance At thestart period. performance andpriortotheendofthree-year prior tothestart ratio betweentheaveragesharepriceoverthreemonths ismeasuredbythe Sharepriceperformance performance. the creationofshareholdervalueisbasedonshareprice variableelementthatislinkedto of thelong-term The part subject tothesebeingmet. variableelement these areas,withpaymentofthelong-term Boardsetstargetsin staff development.TheSupervisory of thecompanyaswellCSRaspectssuchsafetyand corporate objectivesareachieved,suchasgrowthandresult long-term andtheextenttowhichcertain price performance variableelementdependsontheBoskalisshare the long-term (three-year)remunerationscheme.Theamountof long-term ina The membersoftheBoardManagementparticipate D –LONG-TERMVARIABLE ELEMENT further tighteneduptoreflect theDutchClawback Act. further in2014thecontractswere clause’). Wherenecessary (‘clawback of incorrectfinancialorother information variable bonusintheeventthese wereawardedonthebasis variableandthelong-term repayment ofboththeshort-term Board alsohastheauthoritytodemand The Supervisory periods. circumstances havearisenduringtheperformance Board hastheauthoritytoadjustpayoutifexceptional inconsistent withsoundbusinesspractice.TheSupervisory such awayasnottoencouragethetakingofrisksthatare variableelementarestructuredin variable andthelong-term thatboththeshort-term Boardascertains The Supervisory Boskalis’ strategicagenda. company. Thecorporate objectivesaredirectlyderivedfrom price andisthereforelinkedtothevaluedevelopmentof the dependentontheBoskalisshare of Managementispartly This meansthatthevariableincomeofmembersBoard NINA ) safetyprogramand Member oftheBoard T.L. Baartmans Chief FinancialOfficer J.H. Kamps Chief ExecutiveOfficer Dr. P.A.M. Berdowski of Management Members oftheBoard SEVERANCE PAY OFTHEMEMBERSBOARDMANAGEMENT LENGTH OFEMPLOYMENTCONTRACTS,TERMSOFFICEAND the requirementssetwithregardtomaximumseverancepay. Code(i.e.after2004)complywith Corporate Governance joined thecompanysubsequenttointroductionofDutch The contractsofmemberstheBoardManagementwho of theBoardManagement. ofofficeandseverancepaythemembers contracts, terms ofthelength The tablebelowprovidesanoverview OTHER TERMSANDCONDITIONS by thecompanyisinlinewithmarket(includingphone, employmentconditionsoffered The packageofsecondary Board. oftheSupervisory the explicitpriorapprovalofchairman Positions outsidethecompanymayonlybeacceptedwith executives. No loans,advancesorguaranteesareextendedto car, expenseallowance). 1/12/2019 Contract 4 years 4 years length Until Term of 4 years 4 years office Severance 1.5 years 2 years 1 year pay

6 REMUNERATION REPORT 2016 — BOSKALIS REMUNERATION REPORT 2016 — BOSKALIS 7 IN 2016 REMUNERATION POLICY APPLICATION OF successful execution ofBoskalis’strategicagenda. respectively. achievedcontributedtowardsthe Assuchtheperformance achievedin2016,2015and2014, appropriate totheperformance Boardtheremunerationgrantedis In theopinionofSupervisory accordingly. also deemedtobeinexcessofthe‘attarget’levelandwas paidout variableelementovertheperiod2013-2015was The long-term variableelementin2016. the short-term exceeded. Thisresultedinapayoutexcessofthe‘attarget’ levelof variableelementwere During 2015thetargetssetforshort-term of Managementin2016. adjustment wasmadetothebasicsalariesofmembers oftheBoard policy asadoptedbytheGeneralMeetingofShareholders aminor remuneration oftheexecutives.Inaccordancewith withregardtothe The tableonthenextpageprovidesanoverview 2011. Shareholders on21January remuneration policyaslastadoptedbytheGeneralMeetingof In 2016theremunerationpolicywasappliedinaccordancewith

the yearconcernedxEUR1,000) (Payments madebythecompanyin OVERVIEW OFTHETOTAL REMUNERATION OFTHEMEMBERSBOARDMANAGEMENT ** Includesthegeneral compensationfollowingtheamendment ofthePGBpensionscheme regardingthechangefromunconditional toconditionalindexation. * Chief FinancialOfficer J.H. Kamps Chief ExecutiveOfficer Dr. P.A.M. Berdowski T.L. Baartmans F.A. Verhoeven* The agreementofinstructionbetween MrVerhoeven witheffectfrom11May2016. andthecompanywasterminated

2 2015 2 2015 2 2015 2 2015 2016 2016 2016 2016 Year 014 014 014 014 remuneration Basic salary Fixed Fixed 770 557 743 538 557 538 538 557 793 573 573 203 remuneration Variable remuneration Short-term 546 355 331 355 520 338 355 310 313 541 352 352 remuneration Long-term Long-term 501 770 501 501 324 498 324 649 423 423 787 - Pension 140 195 127 163 188 135 135 137 561 320 279 60 ** ** ** allowances Other 28 30 28 29 27 30 21 22 28 28 31 8 1,570 1,598 2,310 1,363 1,583 1,334 1,027 2,572 1,657 1,658 1,410 1,977 Total 8 REMUNERATION REPORT 2016 — BOSKALIS REMUNERATION REPORT 2016 — BOSKALIS SUPERVISORY BOARD REMUNERATION POLICY 9 with thepolicyasadopted. remuneration policywasappliedinaccordance Shareholders on10May2012.In2016the Board wasadoptedbytheGeneralMeetingof The remunerationpolicyfortheSupervisory REMUNERATION POLICY SUPERVISORY BOARD Member oftheAuditCommittee oftheAuditCommittee Chairman Board Member oftheSupervisory (x EUR1,000) SUPERVISORY BOARD OVERVIEW OFTHEANNUALANDCOMMITTEEALLOWANCES FORTHE Member oftheSelectionandAppointmentCommittee oftheSelectionandAppointment Committee Chairman Member oftheRemunerationCommittee oftheRemunerationCommittee Chairman Chairman of the Supervisory Board oftheSupervisory Chairman extended to members of the Supervisory Board. extended tomembersoftheSupervisory not remuneratedinshares,norareanyloans,advancesorguarantees Boardmembersare expenses allowanceofEUR2,368.Supervisory Boardreceiveanannual In additionmembersoftheSupervisory

10 45 60 4 6 5 7 7

Royal Boskalis Westminster N.V. Rosmolenweg 20 PO Box 43 3350 AA Papendrecht The Netherlands [email protected] T +31 78 6969000 www.boskalis.com