REMUNERATION REPORT 2015 2015 REPORT REMUNERATION REMUNERATION REPORT 2015 — BOSKALIS 3 CONTENTS TABLE OF 11 9 7 5 REMUNERATION POLICY SUPERVISORY BOARD IN 2015 REMUNERATION POLICY APPLICATION OF MANAGEMENT FOR THEBOARDOF REMUNERATION POLICY INTRODUCTION
4 REMUNERATION REPORT 2015 — BOSKALIS 5 INTRODUCTION
Dredging work by trailing suction hopper dredgers Freeway and Strandway off the Dutch coast near Bergen-Egmond.
MEMBERS OF THE REMUNERATION COMMITTEE DUTIES AND RESPONSIBILITIES OF THE REMUNERATION COMMITTEE The Remuneration Committee consists of two members, with Mr. Van Woudenberg acting as chairman. Mr. Kramer The Remuneration Committee performs the following duties: acted as a member of the Remuneration Committee until Putting forward a proposal to the Supervisory Board with 12 May 2015, with the Supervisory Board having appointed regard to the remuneration policy to be pursued for the Mr. Niggebrugge as his successor with effect from that Board of Management. The policy is submitted for same date. approval to the General Meeting of Shareholders. Investigating whether the adopted remuneration policy is The Remuneration Committee regularly avails itself of the still up-to-date and proposing policy adjustments where services of an independent remuneration adviser and has necessary. ascertained that this remuneration adviser does not provide Putting forward proposals to the Supervisory Board with advice to the members of the Board of Management. regard to the remuneration of individual members of the Board of Management (this in accordance with the remuneration policy adopted by the General Meeting of Shareholders). Compiling the remuneration report on the remuneration policy pursued, subject to adoption by the Supervisory Board. REMUNERATION REPORT 2015 — BOSKALIS REMUNERATION Remuneration Committeeincluded: During theyearunderreviewactivitiesof Board. Committee werepresentedtotheentireSupervisory and findingsofthemeetingsRemuneration Reports meetings. Committee alsoheldregularconsultationsoutsidethese members havingattendedeachofthemeetings.The both with The RemunerationCommitteemetthreetimesduring2015, ACTIVITIES DURING2015 terms ofsizeandbusiness activities. Followingthereview terms AEX andAMXindices)thatarecomparabletoBoskalisin composition isamixof14Dutchcompanies(listedonthe in thestatusofcompaniesincludedgroup.Thenew peer groupwasrevisedonaccountofanumberchanges representative labormarket.Inlightofthisthemarket Management aresufficientlycompetitivecomparedtothe of remunerationforthemembersBoard toestablishwhetherthelevels conduct aremunerationsurvey remunerationadviserto Committee instructedanexternal onaperiodicalbasistheRemuneration As iscustomary LABOR MARKETPEERGROUP package); measures,compositionofremuneration performance management intheDutchmarket(includinglevel, developments surroundingremunerationpolicyforsenior itselfof toinform commissioning aremunerationsurvey developments intheNetherlandsandinternationally; staying abreastofthelatestcorporategovernance performing scenarioanalyses. performing international remuneration market. international to stayabreastofthedevelopmentsinnationaland In 2016theRemunerationCommitteewillonceagainseek AGENDA FOR2016 circumstances atthattime. be re-evaluatedinthelightofdevelopmentsand changing marketdynamic.In2017theprevailingpolicywill remuneration policyatthistimeinlightoftherapidly Remuneration Committeeproposednottochangethecurrent the elements revealedbytheremunerationsurvey Despite thedifferencesinbothvariableremuneration variableelement. alowerlong-term element andinparticular variable reference group.Thisisduetoalowershort-term Management isbelowthemedianforlabormarket remuneration packageofthemembersBoard However, concludedthattheoveralldirect thesurvey Management receiveanappropriatebasicsalary. group andconcludedthatthemembersofBoard the remunerationofmemberslabormarketpeer for themembersofBoardManagementcomparedto consideredthecurrentremuneration The remunerationsurvey REMUNERATION SURVEY RESULTS Group. Arcadis, Vopak, Industries,OCI,KPNandTKH Aalberts SBM Offshore,RELXGroup,PostNL,Wolters Kluwer, peer groupnowconsistsofBAM,DSM,Fugro,USGPeople, Diver preparesfor subseamaintenancework. 6 REMUNERATION REPORT 2015 — BOSKALIS REMUNERATION REPORT 2015 — BOSKALIS Remuneration policy for the Board of Management 7 Variable Fixed remuneration Type of REMUNERATION PACKAGE FORMEMBERSOFTHEBOARDMANAGEMENT advisor.external policy andcheckedperiodicallyusingdataobtainedby an labor marketpeergroupinaccordancewiththeremuneration basedonthe isdetermined The amountofthebasicsalary AD A–BASICSALARY measures). performance (including pay-outlevelsand–whereapplicable package formembersoftheBoardManagement oftheremuneration The tablebelowprovidesanoverview ELEMENTS OFREMUNERATION Boskalis website(www.boskalis.com). The fulltextoftheremunerationpolicycanbefoundon indicators withdueconsiderationoftheriskstocompany. andnon-financial the Boskalis’sharepriceperformance structure ofthe remuneration included the development of results, theamountand Other factorstakenintoaccountindetermining scenarioanalyses. byperforming determined and inpart the remunerationofindividualboardmemberswereanalyzed for andlongterm) the variableremunerationelements(short the companywereadheredtoandthatpotentialoutcomesof executing theremunerationpolicyratioswithin thatindefiningand The RemunerationCommitteeascertained employees aswellthe‘widerenvironment.’ into accounttheinterestsofBoskalis’shareholders,clients, orientationandcontinuitytake centered onlong-term with thestrategyandcorevaluesofBoskalis,whichare 2011.Theremunerationpolicyisconsistent on 21January GeneralMeetingofShareholders adopted bytheExtraordinary The remunerationpolicyfortheBoardofManagementwas THE BOARDOFMANAGEMENT REMUNERATION POLICYFOR D. Long-term element D. Long-term C. Short-term element C. Short-term B. Pensionplan (xEUR1,000) A. Basicsalary Element ofremuneration - Realizingcorporate policy - measured: Performance Period: 3years - 50%individualtargets - 50%full-yearnetresult measure: Performance Period: 1year — Period: 2015 Performance period&measures Share priceperformance price performance and the extent to which certain long-term long-term andtheextenttowhichcertain price performance variableelement dependsontheBoskalisshare the long-term (three-year)remunerationscheme.Theamountof long-term ina The membersoftheBoardManagementparticipate AD D–LONG-TERMVARIABLE ELEMENT the Board ofManagement). accordingtothepositionheldon achievements (varying expansion oftheTowage divisionandspecificcommercial successful implementationofthenewdivisionalstructure, objectives asdefinedfor2015.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. withpaymentoftheshort-term and individual performance, Boardsetstargetsforfull-yearnetresult The Supervisory AD C–SHORT-TERM VARIABLE ELEMENT 67. is scheme withafiscalcapofEUR100,000.Theretirementage averageearnings an unconditionallyindexednon-contributory Pensioenfonds GrafischeBedrijven.Pensionaccrualisbasedon in theBoskalispensionscheme,whichisadministeredby The membersoftheBoardManagementparticipate AD B–PENSIONPLAN Maximum BoMmember:67,5%ofbasicsalary At targetBoMmember:45%ofbasicsalary Maximum CEO:75%ofbasicsalary At targetCEO:50%ofbasicsalary See tableonpage10 BoM member:EUR557 CEO: EUR770 Maximum BoMmember: 67,5%ofindexed basicsalary At targetBoMmember: 45%ofindexed basic salary Maximum CEO:75%ofindexedbasicsalary At targetCEO:50%ofindexedbasicsalary further tightened uptoreflectthe DutchClawback Act. further thecontractsfor2014 were clause’). Where necessary (‘clawback of incorrectfinancial orotherinformation variable bonusintheeventthese wereawardedonthebasis variableandthelong-term repayment ofboththeshort-term Board alsohastheauthoritytodemand The Supervisory periods. circumstances havearisenduring theperformance Board hastheauthoritytoadjust thepayoutifexceptional 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 that therelevantproceduresarefollowedcorrectly. variableelementandisresponsibleforensuring long-term ofthe auditorisinvolved inthefinaldetermination external ofquality.objectives arelargelyassessedinterms The ofquantity,value is assessedinterms whilethecorporate withregardtothecreationofshareholder Performance the seniormanagement. - NoAccidents)safetyprogramandsuccessionplanningfor the company-wideimplementationofNINA(NoInjuries post-merger andintegrationactivities,CSRobjectivessuchas met overthepastthree-yearperiod.Examplesofthisinclude bythedegree to whichthestatedtargetswere determined variableelement)isultimately The level(ofthelong-term Management and45%fortheotherexecutives). 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 creation ofshareholdervalueisbasedonshareprice variableelementthatislinkedto of thelong-term The part subject tothesebeingmet. variableelement these areas,withpaymentofthelong-term Boardsetstargetsin staff development.TheSupervisory of thecompanyaswellCSRaspectssuchsafetyand corporate objectivesareachieved,suchasgrowthandresult F.A. Verhoeven T.L. Baartmans Chief FinancialOfficer J.H. Kamps Chief ExecutiveOfficer Dr. P.A.M. Berdowski of Management Members oftheBoard AND SEVERANCEPAY OFTHEMEMBERSBOARDMANAGEMENT LENGTH OFEMPLOYMENT(ANDOTHER)CONTRACTS,TERMSOFFICE regard tomaximumseverancepay. (i.e. after2004)complywiththerequirementsset Code to theintroductionofDutchCorporateGovernance Board ofManagementwhojoinedthecompanysubsequent The employment(andother)contractsofmembersthe severance payofthemembersBoardManagement. ofofficeand employment contractsandothercontracts,terms ofthelength The tablebelowprovidesanoverview OTHER TERMSANDCONDITIONS Supervisory Board. Supervisory ofthe with the explicitpriorapprovalofthechairman Positions outsidethecompanymayonlybeaccepted executives. No loans,advancesorguaranteeswillbeextendedto car, expenses). by thecompanyisinlinewithmarket(includingphone, employmentconditionsoffered The packageofsecondary Contract indefinite 4 years 4 years 4 years length indefinite Term of 4 years 4 years 4 years office Severance 1.5 years 2 years 1 year 1 year pay 8 REMUNERATION REPORT 2015 — BOSKALIS REMUNERATION REPORT 2015 — BOSKALIS 9 IN 2015 REMUNERATION POLICY APPLICATION OF the successful execution ofBoskalis’ strategicagenda. respectively. achieved contributedtowards Assuchtheperformances achieved in2015,2014and 2013, appropriate to theperformances Boardtheremunerationgrantedis In theopinionofSupervisory accordingly. deemed tobeinexcessofthe ‘attarget’levelandwaspaidout variableelementovertheperiod2012-2014 wasalso The long-term variableelementin2015. the short-term exceeded. Thisresultedinapayoutexcessofthe‘attarget’ levelof variableelementwere During 2014thetargetssetforshort-term the basicsalariesofmembersBoardManagement in2014. the GeneralMeetingofShareholdersaminoradjustment wasmadeto the executives.Inaccordancewithremunerationpolicy asadoptedby withregardtotheremunerationof The tablebelowprovidesanoverview 2011. Meeting ofShareholderson21January General the remuneration policyaslastadoptedbytheExtraordinary In 2015theremunerationpolicywasappliedinaccordancewith 10
The sheerleg crane Taklift 4 lifts a section of the wreck of the Baltic Ace from the bed of the North Sea.
OVERVIEW OF THE TOTAL REMUNERATION OF THE MEMBERS OF THE BOARD OF MANAGEMENT (x EUR 1,000) (payments made by the Year Fixed Variable remuneration Pension* Other Total company in the year concerned) remuneration allowances Basic salary Short-term Long-term remuneration remuneration
Dr. P.A.M. Berdowski 2015 770 546 770 195 29 2,310 Chief Executive Officer 2014 743 520 498 188 28 1,977 2013 708 490 454 177 28 1,857
J.H. Kamps 2015 557 355 501 140 30 1,583 Chief Financial Officer 2014 538 338 324 135 28 1,363 2013 512 319 296 128 25 1,280
T.L. Baartmans 2015 557 355 501 127 30 1,570 2014 538 310 324 135 27 1,334 2013 512 305 296 128 27 1,268
F.A. Verhoeven 2015 557 355 501 163 22 1,598 2014 538 331 - 137 21 1,027 2013 512 319 - 135 21 987
* In 2015 this included around EUR 21,000 for each member of the Board of Management for pension contribution paid as well as the supplement for any pension accrual above EUR 100,000. REMUNERATION REPORT 2015 — BOSKALIS REMUNERATION 11 REMUNERATION REPORT 2015 — BOSKALIS SUPERVISORY BOARD REMUNERATION POLICY with thepolicyasadopted. remuneration policywasappliedinaccordance Shareholders on10May2012.In2015the Board wasadoptedbytheGeneralMeetingof The remunerationpolicyfortheSupervisory REMUNERATION POLICY SUPERVISORY BOARD (x EUR1,000) BOARD OVERVIEW OFTHEANNUALANDCOMMITTEEALLOWANCES FORTHESUPERVISORY Member oftheSelectionandAppointmentCommittee oftheSelectionandAppointment Committee Chairman Member oftheRemunerationCommittee oftheRemunerationCommittee Chairman Member oftheAuditCommittee oftheAuditCommittee Chairman Board Member oftheSupervisory 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 Transportation by the Target of the Hakuryu 12 jack-up platform from Chaguaramas, Trinidad to Sharjah, UAE. Royal Boskalis Westminster N.V. Rosmolenweg 20 PO Box 43 3350 AA Papendrecht The Netherlands [email protected] T +31 78 6969000 F +31 78 6969555 www.boskalis.com