66 EXECUTIVE BOARD REMUNERATION POLICY 2010 Total compensation  Review of the Policy  Ensuring pay remains competitive Total compensation AEGON’s Remuneration Policy for members of the  company’s Executive Board has four main objectives:  In 2010, the peer group comprised the following  companies: Aviva, Axa, CNP Assurances, Generali,  ING Group, Legal & General, Münchener Rückversicherung,  Old Mutual, Prudential plc., Standard Life, Swiss Re and  Zurich Financial Services. In addition, to monitor  alignment with the general industry in the Netherlands,  a reference group has been established, comprising the  twelve leading companies listed on Euronext Amsterdam,  excluding financial services providers. The Supervisory  Board will regularly review the composition of these two  groups to ensure they continue to provide a reliable  basis for comparison.  AEGON’s current Executive Board Remuneration Policy  was introduced in 2010 as part of broader arrangements  with the Dutch State. The Policy was formally adopted by  the General Meeting of Shareholders on April 29, 2010,  and took effect retroactively from January 1, 2010.  The Policy will remain in force until AEGON has fully  repurchased the core capital obtained from the  Dutch State through Vereniging AEGON in December  2008 at the height of the global financial crisis, or until  such time as the Supervisory Board proposes changes or  amendments.  For each member of the Executive Board, AEGON’s  Supervisory Board determines a maximum total  compensation, reflecting the specific roles and  responsibilities of the individual. In 2010, the Supervisory  Board used 2009 remuneration levels as an initial  reference point to help determine total compensation.  Each year, the Supervisory Board will review total  compensation levels to ensure they remain competitive  and provide proper, risk-based incentives to members of  AEGON’s Executive Board. Total compensation will  consist of two elements:  AEGON’s Executive Board Remuneration Policy is  reviewed every year by the company’s Compensation  Committee. If necessary, the Committee recommends  amendments to the Supervisory Board. Any material  changes are submitted by the Supervisory Board to the  General Meeting of Shareholders for adoption. The  Policy applies to all members of AEGON’s Executive  Board, and is used as a framework to determine  remuneration for members of the company’s  Management Board and senior managers throughout  the organization. AEGON regularly compares its levels of executive  remuneration with those at other, comparable  companies. Companies included in the peer group have  been chosen according to the following criteria: The chart below gives each of these components as a  maximum percentage of total compensation for 2010. At maximum level ■ Location (companies based in Europe). ■ Geographic scope (preferably companies operating  globally). ■ Size (companies with similar assets, revenues and  market capitalization). ■ Industry (preferably life insurance). 1. To enable AEGON to attract and retain highly-qualifi ed  members for its Executive Board. 2. To provide a well-balanced and performance-related  compensation package for Executive Board members.  3. To ensure that the interests of Executive Board.  members are aligned with AEGON’s business strategy  and risk tolerance as well as the objectives, values and  long-term interests of the company.  4. To enhance the transparency and simplicity of  Executive Board members’ remuneration, consistent  with the principle of “pay for performance”.  ■ Fixed compensation ■ Variable compensation, both short and long-term  Fixed compensation Variable compensation, long-term Variable compensation, short-term 50.0% 16.7% 33.3%