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Philips execs bag $1.3M bonus for NXP creation

Posted: 21 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Royal Philips Electronics? NXP Semiconductors? semiconductor? John Walko?

Three senior executives at Royal Philips Electronics were awarded about $1.38 million in the transaction that saw the spin-off of its semiconductors division to create NXP Semiconductors, according to the company's annual report published Monday (Feb. 19).

Chief executive Gerard Kleisterlee, chief financial officer Pierre-Jean Sivignon and semiconductor CEO Frans van Houten were the main beneficiaries of the "special payment" that saw Philips sell an 80.1 percent stake in the chips division last year to a private equity group led by Kohlberg Kravis Roberts & Co.

The sale raised $10.42 billion, the annual report indicates and the simultaneous acquisition of a minority interest in the recapitalized organization cost $1.12 billion, the report said. Philips also netted a gain of $5.6 billion, net of costs associated with the transaction of approximately $5.6 million.

The company also said it would propose at the next Annual General Meeting that Kleisterlee be reappointed as president and CEO for another four years, effective April 1. Kleisterlee's term is due to expire next year.

Separately, Philips said in its latest Sustainability Report it would increase investment in green lighting technologies by more than $131.7 million per year over the coming years. The company said in the report sales of its range of green products rose to more than $5.2 billion in 2006 as a result of its EcoDesign drive over the past decade and its investment of more than $527 million in green lighting technologies over the last five years.

Philips also stressed it is putting increasing emphasis on the "hidden" energy use for TVs on standby, and that it aims to lower standby energy consumption of its TVs to below 0.2Win its 2008 model TVs. Additionally, it is addressing the energy consumed when the television is on, in particular in its LCD TVs, with light sensors for automatic dimming backlights to reduce energy consumption.

- John Walko
EE Times Europe

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