Remuneration Policy

Fortis Board members

The remuneration of non-executive Board Members consists of a basic annual salary plus attendance fees for Board committee meetings. Non-executive Board Members do not receive any variable or profit-related incentives, option rights, shares or other fees. Total remuneration paid to non executive Board Members in 2006 was EUR 1.8 million.

Remuneration of the Chief Executive Officer, who was the only executive member of the Board throughout 2006, is related exclusively to his position as CEO. For executive Board Members, the Board mandate as such is not remunerated. Executive Board Members receive a remuneration linked to the executive functions they perform within Fortis, determined in accordance with the remuneration policy for Fortis Board Members and Executive Managers. Their remuneration consists of a basic salary, plus a variable annual incentive and a variable longterm incentive. The variable remuneration (annual and longterm incentives) depends on such factors as individual performance, Fortis’s performance relative to predefi ned targets and Fortis’s performance relative to several of its peers in the financial sector. Details of the remuneration paid to Jean-Paul Votron in 2006 are provided in note 11 of the Fortis Financial Statements.

One non-executive member of the Board of Directors holds options arising from his previous management position, while several Board Members hold Fortis shares. In accordance with Dutch and Belgian law and regulations, details and updates of stock options and shares held by all Board Members are reported to the BFIC in Belgium and the Authority for the Financial Markets in the Netherlands. Members of the Board hold a total of 885,050 shares and 141,900 stock options and 60,900 restricted shares.

See note 11 of the Fortis Financial Statements for a review of remuneration policy, actual remuneration of the Board Members and Fortis options and shareholdings.

Executive Managers

The remuneration of executive managers consists of a fixed basic salary, a variable annual incentive and a variable long-term incentive, which in 2006 was received partly as option rights and partly as cash and restricted shares. The variable remuneration depends on such factors as individual performance, performance of the business relative to predefi ned targets and Fortis’s performance relative to several of its peers in the financial sector.

See note 11 of the Financial Statements for an overview of the remuneration policy and of the individual remuneration for 2006 of the CEO and the aggregate remuneration of members of the Executive Committee.