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CEO succession study NL vs

Global.ppt

Booz & Company

Booz & Company

This document is confidential and is intended solely for

the use and information of the client to whom it is addressed.

CEO Succession Study The Netherlands 1/1/2000 till 31/12/2011 - AEX / AMX

Amsterdam, May 2012 Marketing Document

30 September 2012


Global.ppt

Booz & Company 1

Outgoing CEO Reason of

Departure Ingoing CEO Comments

John Rishton (54) left to

become the CEO of

Rolls Royce

Planned

Insider Dick Boer (57)

became CEO after almost 15

years of experience at Ahold

Rishton was still in good

relationship with the firm

Bernard Fontana (51)

left Aperam (a spin-off

of Arcelor Mittal) to

become the CEO of

Holcim

Planned

Outsider Philippe Darmayan

(60) became CEO in

November after a career at

the mother company Arcelor

Mittal

Fontana was still in good

relationship with the firm

Aperam was split from

Arcelor Mittal in January

2011

Peter Bakker (50) left

during the split of TNT

into PostNL and TNT

Express

Planned

PostNL: Insider Harry

Koorstra (60) became

CEO after joining TNT in

1991

TNT Express: Insider

Marie-Christine Lombard

(54) became CEO after

joining TNT in 1998

Pierre-Henri Gourgeon

(66) left due to bad

financial performance

Forced

Insider Jean-Cyril Spinetta

became CEO of Air France –

KLM after being the CEO

from 2003-2009 as well

Gourgeon had a double role

as CEO of Air France and

CEO of Air France – KLM.

New CEO of Air France is

Alexandre de Juniac

CEO Successions in 2011 (1/2)

In 2011 we observed 8 CEO successions - 6 of these where planned, one left with during a merger, one of them was forced

AEX

AEX

AEX

30 September 2012

AEX


Global.ppt

Booz & Company 2



Ad Scheepbouwer (67)

left after a tenure of

more than 9 years

Planned

Insider Eelco Blok (54)

became CEO after more

than 15 years experience at

KPN

Gerard Kleisterlee (65)

retired after almost ten

years as CEO

Planned

Outsider Frans van Houten

(52) became CEO. From

2006-2010 he worked for

NPX and ING. Before 2006

he worked 20 years at

Philips

Gerard Kleisterlee is now

chairman of Vodafone

Reinier van Gerrevink

(62) left after more than

9 years of service

M&A

Insider Taco de Groot (49)

became CEO of Vastned

Retail after joining in 2010 as

COO

VastNed Group consisted

of VastNed Retail and

VastNed Offices having one

management

VastNed Offices merged

with Nieuwe Steen

Investments

John Paul Broeders

(48) left to become

chairman of SHV

Planned

Insider Eelco Hoekstra (40)

became CEO after almost

ten years at Vopak

Broeders left after getting

an offer from SHV

Broeders passed away in

May 2011

Of the 8 companies with CEO successions in 2011, 6 were AEX listed, 2 AMX listed

CEO Successions in 2011 (2/2)

AEX

AEX

AMX

AMX

30 September 2012


Global.ppt

Booz & Company 3



Harry Koorstra (60) left

in April after

disagreement with the

advisory board

Forced

Insider Herna Verhagen (45)

became the new CEO after

two decades of experience

with the company

Harry Koorstra would

retire in 2013

Koorstra’s leave was

unexpected

Tony Mace (61) left in

January due to bad

performance

Forced

Outsider Bruno Chabas (47)

becomes CEO after joining

SBM in May 2011 as COO

The CFO of SBM, Mark

Miles, left as well due to

bad performance

Hans Wijers (60) left

AkzoNobel in April Planned

Outsider Ton Buchner (45)

becomes the new CEO after

being the CEO of Sulzer (a

Swiss engineering and

manufacturing firm)

Akzo does not give a

reason for Wijers’ leave

Wijers was appointed till

the end of 2013

Wijers’ leave was not a

surprise

Klaas Wester (65)

retired in January Planned

Insider Arnold Steenbakker

(54) becomes CEO after

joining Fugro in 2005

In 2012 there are already ten CEO successions – 3 of them were forced, 6 were planned, one left during an acquisition

CEO Successions in 2012 till May (1/2)

AEX

AEX

AEX

30 September 2012

AEX


Global.ppt

Booz & Company 4



Gerrit Witzel (60) left

after 2 years as CEO Planned

Insider Bert van der Els (58)


Heijmans in 2008

Heijmans does not give a

reason for Witzel’s leave

Harry Noy (61) left in

May Planned

Outsider Neil McArthur(50)

becomes the new CEO after

being one year member of

the executive board

Arcadis does not give a

reason for Noy’s leave

Jan Aalberts (72)

retired in April Planned

Insider Wim Pelsma (48)


Aalberts in 1999

Wout Dekker (56) Planned

Insider Knut Nesse (45)

becomes CEO in August

after joining Nutreco in 2009

Hans Pars (50) Forced

Insider Dirk Anbeek (49)

becomes CEO in August

after joining Wereldhave in

2009 as CFO

Hans Pars left after bad

performance

Andy Green (56) M&A Unknown CGI takes over Logica

Of the 10 companies with CEO successions so far in 2012, 4 were AEX listed, 6 AMX listed

CEO Successions in 2012 till May (2/2)

AMX

AMX

AMX

30 September 2012

AMX

AMX

AMX


Global.ppt

Booz & Company

The Dutch turnover rate is slightly higher than the global and Western European average

5

Average

14.2%

Other

Emerging

11.3%

8.8%

0.4%

2.1%

Brazil,

Russia,

India

22.0%

14.7%

4.4%

2.9%

6.8%

5.1%

1.3%

0.4%

China

16.4%

10.4%

3.8%

2.2%

Other

Mature

Japan

16.8%

12.6%

1.4%

2.8%

Western

Europe

13.9%

9.7%

2.4%

1.8%

US /

Canada

13.5%

9.3%

1.6%

2.6%

2011 CEO Turnover Rate by Region and Succession Reason CEO Turnover Events as % of Top 2,500 Companies

Planned Forced M&A

1) Other emerging economies, e.g., Turkey, Saudi Arabia, Mexico, South Africa, Mauritius, Nigeria, Mongolia, Kazakhstan, Egypt, etc.

2) Other mature economies, e.g., Hong Kong, South Korea, Australia, Czech Republic, Poland, Argentina, Cyprus, Cayman Islands, Hungary, Bahrain, Bermuda, Macau, Chile, New Zealand, etc.

Note: Mature countries defined as per the United Nations Development Program 2011 ranking of countries with “very high human development” (countries with Human Development Index >0.788), all other countries classified as “emerging countries”

Source: Booz & Company CEO Succession 2011 analysis

2011 Turnover by Region

9.8%

Global

14.2%

2.4% 2.2%

2.2%

Western

Europe

13.9%

9.7%

1.8%

Netherlands

16.0%

12.0%

2.0%

2.0%

Forced Planned M&A

Dutch Turnover Rate by Reason

% of AEX / AMX companies with CEO change

N =50 N =2500

30 September 2012


Global.ppt

Booz & Company

30 September 2012

0%

5%

10%

15%

20%

25%

30%

Turnover rate

2011

14.2%

9.8%

2.2%

2.2%

2010

11.6%

7.7%

2.2% 1.8%

2009

14.5%

9.1%

3.6%

1.8%

2008

14.4%

7.2%

5.1%

2.2%

2007

13.8%

6.8%

4.2%

2.8%

2006

14.4%

6.6%

4.6%

3.2%

2005

15.4%

9.2%

3.6%

2.6%

2004

14.7%

7.7%

4.5%

2.5%

2003

9.8%

5.3%

3.2%

1.3%

2002

10.8%

5.0%

4.4%

1.4%

2001

10.9%

6.0%

2.4%

2.4%

2000

12.9%

6.4%

3.4%

3.2%

Last year CEO turnover rates globally increased 2.6ppt while the Dutch stayed constant

Global CEO Turnover Rate by Reason

% of top 2500 public companies with CEO change

Source: Booz & Company CEO Succession 2010 analysis, AEX/AMX Succession database

0%

5%

10%

15%

20%

25%

30%

Turnover rate

2011

16.0%

12.0%

2.0%

2010

16.0%

8.0%

4.0%

4.0%

2009

22.0%

10.0%

10.0%

2.0%

2008

26.4%

11.3%

9.4%

5.7%

2007

12.0%

2.0%

4.0%

6.0%

2006

22.0%

12.0%

8.0%

2.0%

2005

18.0%

8.0%

8.0%

2.0%

2004

22.0%

14.0%

8.0%

2003

26.4%

9.4%

17.0%

2002

22.0%

16.0%

6.0%

2001

18.0%

2.0%

16.0%

2000

14.0%

6.0%

6.0%

2.0%

Dutch Turnover Rate by Reason

% of AEX / AMX companies with CEO change

Planned Forced M&A Planned Forced M&A

7 9 11 14 11 9 11 6 14 11 8 8

N = 50

# of leaving

CEO’s

N = 2500

Avg ‘00-’11 = 19.6%

‘11 =16.0%

6

Avg ‘00-’11 = 13.1%

‘11 =14.2%


Global.ppt

Booz & Company 7

CEO Tenure in Office by Region: 2000-2011 Likelihood of Turnover Event by Tenure in Office

Dutch outgoing CEOs have a much shorter tenure than European and American CEOs

2%

8%

29%

62%

6%

11%

31%

53%

13%

16%

38%37%

0%

10%

20%

30%

40%

50%

60%

70%

# Years in

office of

outgoing

CEO 16+

Probability of

occurrence

11-15 6-10 0-5

Insider vs. Outsider Comparison – US/Canada vs. W. Europe

Note: Excludes turnover events resulting from M&A, interims and events with incomplete turnover information


30 September 2012

US/Canada

WE

Netherlands (N=119)


Global.ppt

Booz & Company 8

CEO Tenure in Office by Region: 2000-2011 Likelihood of Turnover Event by Tenure in Office

CEO tenure above 10 years is much more prevalent among US/Canadian CEOs than Western European ones

3%

0%1%

1%1%

2%2%

4%6%

9%

14%

11%

6%

1%0%

2%

3%

5%

9%8%

14%

11%

14%

9%

5%

8%

0%

2%1%

3%3%

3%

4%4%

5%

8%

7%

9%

8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

4

8%

10%

3

7%

10%

2

7%

1

6%

0-0.4

1%

1%

0%

1%

0%

12 15 14 13

3%

1% # Years in

office of

outgoing

CEO 20+

1%

19

1%

18 17

0%

16

Probability of

occurrence

5 11

9%

2%

10 9

5% 5%

2%

3%

7

4%

7%

6 8

US/Canada

Netherlands

Western Europe

Tenure above 11 years in office is much more

likely among US/Canada CEOs

Insider vs. Outsider Comparison – US/Canada vs. W. Europe

Note: Excludes turnover events resulting from M&A, interims and events with incomplete turnover information


Tenure under 4 years in office is much more

likely among Dutch CEOs

30 September 2012

Prepared for client name CEO succession study NL vs Global.ppt Booz & Company

30 September 2012 9

The average tenure of Dutch CEO’s (~5.1 y.) is lower than the global average (~7.4 y.)

6.66.36.67.3

8.07.9

6.8

7.6

8.5

7.58.1 8.1

0

2

4

6

8

10

Ø 7.4

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Note: Excludes succession events involving mergers/acquisitions and interim CEOs

Source: Booz & Company CEO Succession 2009 analysis, AEX/AMX Succession database

Global CEO tenure of outgoing CEO’s

top 2500 public companies with CEO change

5.9

2.3

5.8

4.5

2.9

7.57.5

4.45.1

6.7

3.7

4.9

0

2

4

6

8

10

Ø 5.1

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

N = 6 9 11 14 11 8 10 3 11 10 6 7

Dutch CEO tenure of outgoing CEO’s

AEX / AMX companies with CEO change


Global.ppt

Booz & Company

DATE 10

In the Netherlands, the outsiders’ share of CEO successions continues to be larger than globally

25

16

26

17

25

1620

2628

24

10

22

75

84

74

83

75

8480

7472

90

76

0

10

20

30

40

50

60

70

80

90

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% Insiders/

Outsiders

78

45

36

2723

30

44

75

55

64

89

77

70

86

0

10

20

30

40

50

60

70

80

90

100

56

14

% Insiders/

Outsiders

2000 2001 2002

50

73

11

30

70

50 50 50

25

2003 2004 2005 2006 2007 2008 2009 2010 2011


7 9 11 14 11 9 11 6 14 11 8 8 N =

Insider vs. Outsider Outgoing CEOs

Global

Insider vs. Outsider Outgoing CEOs

Netherlands

Outsiders Insiders


Global.ppt

Booz & Company

DATE 11

On average the Netherlands has a higher share of outsider CEOs than globally; however this difference becomes smaller

22222218

14

78787882

86

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 2010 2011

% Outsiders

% Outsider Incoming CEOs Global % Outsider Incoming CEOs Netherlands

25

43

6767

57

75

88

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 2010 2011

% Outsiders

33

13

33

Insiders Outsiders 6 14 11 8 8 N =



Global.ppt

Booz & Company

Globally, insiders stay on average more than one year longer than outsiders; this is not the case in the Netherlands

12

4.8

3.93.7

4.4

3.9

5.7

4.8

0

1

2

3

4

5

6

7

8

Median tenure

(years)

2009-2011 2006-2008 2003-2005 2000-2002

3.1

5.15.0

5.6

6.3

4.3

3.7

4.85.0

0

1

2

3

4

5

6

7

8

Median tenure

(years)

2009-2011 2006-2008 2003-2005 2000-2002

Median CEO Tenure in Office

- Insider vs. Outsider Outgoing CEO Globally


- Insider vs. Outsider Outgoing CEO Netherlands


30 September 2012

Outsider

tenure is

longer than

insider tenure

Outsider (avg=4.5)

Insider (avg=5.5)

Outsider (avg=4.3)

Insider (avg=4.2)


Global.ppt

Booz & Company

Dutch insider CEOs stay on much shorter than insider CEOs in most other regions

13

7.0

7.77.2

5.8

5.0 4.6

4.2

4.1

10.0

1.0

0.5

2.5

5.4

5.1

5.4

6.05.8

3.93.7

7

6

5

4

3

2

1

0

Netherlands (avg=4.2)

Other Emerging (avg=8.4)

Japan (avg=5.3)

Median tenure

(years)

China (avg=2.9)

BRIC (avg=4.8)

Other Mature (avg=6.0)

Western Europe (avg=5.4)

US/Canada (avg=7.5)

17

4.8 5.0

4.0

2006-2008

4.0

2003-2005

10

2009-2011

9

8

5.4

2000-2002

4.4

16.8

10.6

8.1


for Insider Outgoing CEOs by Region


30 September 2012


Global.ppt

Booz & Company

30 September 2012

The average age of Dutch CEO’s at start is slightly higher (~ 52 y.) than the global average ( ~51 y.)

53.053.353.4

50.450.9

52.251.8

45

50

55

Ø 51.4

2011 2010 2009 2008

51.3

2007

50.0

2006 2005 2004

51.1

2003 2002

49.6

2001 2000

50.2

Global CEO age at start


Dutch CEO age at start


14

6 9 11 14 11 8 10 4 11 10 9 6 N =

52.0

53.053.4

52.3

53.6

52.652.653.3

45

50

55

2004

Ø 52.0

2009

52.0

2008 2007 2006

48.1

2005

50.4

2003 2002 2001 2000

51.2

2010 2011

Note: Excluding Interim and Merger successions

Source: VEB, Booz & Company analysis


Global.ppt

Booz & Company

The age of leaving Dutch CEOs stayed constant over the past years

15

56.6

58.2

61.8

58.257.658.6

57.958.3

59.7

45

50

55

60

65

2006 2000

58.3

56.0

2007 2011 2004 2010 2005

Ø 58.1

2008 2001 2002 2003 2009

56.2

58.4

58.7

59.5

58.057.9

58.2

59.4

57.9

59.5

58.159.4

58.4

45

50

55

60

65

Ø 58.6

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Dutch CEO age at leave


Note: Excluding Interim and Merger successions


30 September 2012

Global CEO age at leave


6 9 11 13 11 8 10 3 11 10 6 7 N =


Global.ppt

Booz & Company

Globally outsider CEOs underperform insiders the past years – however, Dutch outsider CEOs over perform insiders

16

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Relative

Stock Performance

to AEX

2011

8.5%

1.1%

2010

2.5%

-6.5%

2009

-11.2%

-1.8%

2008

-0.3%

3.4%

2007

-11.1%

9.5%

2006

40.3%

4.0%

2005

51.8%

-2.3%

Outsider (avg=12%)

Insider (avg=1.0%)

-5%

0%

5%

10%

15%

Regionally

Adjusted &

Annualized Total

Shareholder Return

2011

0.5%

4.4%

2010

0.5%

4.4%

2009

0.7%

4.0%

2008

-0.6%

3.9%

2007

1.5%

2.9%

2006

5.6%

4.1%

2005

11.0%

3.9%

Outsider (avg=2.7%)

Insider (avg=3.9%)

Global Median Shareholder Returns

of Outgoing CEOs Dutch Median Shareholder Returns

of Outgoing CEOs

Note: Dividends are not included in the relative Dutch stock performances

Note : Only companies with stock performances published by VEB are included in the analysis. Therefor the sample is smaller than in other analyses


4 10 8 7 3 10 10 6 5 N =

30 September 2012


Global.ppt

Booz & Company

Dutch CEOs that were forced to leave have a significant worse performance than CEOs that planned to leave

17

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Relative

Stock Performance

to AEX

7.0% 3.5%

-16.2%

2005 2006 2007 2008 2009

-8.2%

2003 2004 2010 2011

2.1%

-11.1%

1.3%

-6.9%

-6.3%

-13.5% -9.6%

2.3%

-14.7%

58.8%

77.8%

2.0%

-2.3%

-3.3%

Planned, Avg. 7.49%

Forced, Avg -0.52%


Dutch Median Shareholder Returns

of Outgoing CEOs

4 10 8 7 3 10 10 6 5 N =

30 September 2012

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