Remuneration report

This remuneration report was prepared by the Remuneration Committee and sets out the Company’s remuneration policy and practice for the Directors. The report also provides details of Director remuneration for the year ended 31 December 2008.

Remuneration policy

A remuneration policy for the Board Directors was adopted by the General Meeting of shareholders in April 2008 and applied during the financial year 2008.

The objective of the remuneration policy is to attract, retain and motivate highly qualified Executives by providing well-balanced remuneration. The remuneration policy aims to ensure that a competitive remuneration package for the Executive Directors is maintained and benchmarked against other multinational companies based in Europe and operating in global markets. In order to align executive performance with shareholder value, the remuneration of Executive Directors is linked to individual and NWR Group performance. The remuneration package includes a significant variable part in the form of cash bonus incentive and a long-term incentive in the form of stock options and grants. The remuneration policy also sets out remuneration of Non-Executive Directors, as described further. While the remuneration policy applies to the Board Directors, the Remuneration Committee is also responsible for proposing to the Board individual salary levels, bonuses and other benefits for a number of senior managers and key employees defined by the Remuneration Committee.