for 2003 and 2004. Due to the condition in the SAR Program for the Executive Board that SARs or stock options will only be granted if AEGON’s net income per share has increased, the Executive Board members did not receive any SARs (nor stock options) in 2003. For further details, please refer to the chapter on AEGON’s Remuneration Report on page 70 and following and the remuneration of the Executive Board on pages 117 and 118. The Nominating Committee, active since 1983, with Mr. Tabaksblat as chairman and Messrs. De Ruiter, Olcay and  De Wit as members, held five meetings in 2003. Four meetings were also attended by the Executive Board’s chairman, one meeting was being held without any Executive Board member present. The Committee discussed the functioning and the composition of the Executive Board and the Supervisory Board and the existing and forthcoming vacancies in both Boards. The Strategy Committee, active since 2002, with  Mr. Tabaksblat as chairman and Messrs. De Ruiter, Olcay and Storm as members, held three meetings, also attended by the Executive Board members. The purpose of this Committee is  to review the major features of AEGON’s strategy, to look at alternatives and to consider the material aspects relating to the implementation of the strategy. The Committee discussed AEGON’s business strategy at length and prepared the agenda for the strategy meeting of the Supervisory Board held in  June 2003. Mrs. Peijs stepped down from the Supervisory Board on  May 20, 2003, following her appointment as the Minister for Transport, Public Works and Water Management of the Netherlands. We congratulate her with this appointment  while at the same time regretting the fact that we have lost  a valuable member on our Board. Mr. Posthumus stepped down from the Supervisory Board on April 17, 2003, as he reached the retirement age of 70 years. He had been a member since 1997. We thank him for  his valuable contributions to the Board’s discussions.  Mr. Van Wijk was appointed as a member of the  Supervisory Board as from April 17, 2003. In 2004, Mr. de Ruiter will reach the retirement age of  70 years and will step down at the end of the annual General Meeting of Shareholders in that year. It is the intention that this vacancy be filled by nominating Mr. René Dahan, a former director of Exxon Mobil Corp. He will be nominated for appointment during the annual General Meeting of Shareholders to be held on April 22, 2004. Further details of  Mr. Dahan will be provided together with the agenda for the annual General Meeting of Shareholders on April 22, 2004. Also in 2004, the four-year terms of office of Mrs. Rembe  and Messrs. Olcay and De Wit will end. Mr. De Wit has been  a member of this Board for fourteen years and will, in compliance with the Dutch Corporate Governance Code, step down as a member at the annual General Meeting of Shareholders to be held on April 22, 2004. Mrs. Rembe and  Mr. Olcay are eligible for reappointment. We intend to nominate them for reappointment during the annual General Meeting of Shareholders on April 22, 2004. The departures of Mrs. Peijs and Mr. De Wit caused two vacancies in the Board. We will fill these vacancies. In 2005, the four-year terms of office of Messrs. Eustace, Stevens and Tabaksblat will end. Messrs. Eustace and Stevens are eligible for reappointment. In compliance with the Dutch Corporate Governance Code, Mr. Tabaksblat is not available  for reappointment and he will consequently step down  at the end of the annual General Meeting of Shareholders to be held in 2005.  Mr. Wynaendts was appointed a member of the Executive Board as per the close of the annual General Meeting of Shareholders held on April 17, 2003. On November 1, 2003, Mr. Van de Geijn stepped down as  a member of the Executive Board. We thank him for over 30 years of good service to the AEGON Group. This annual report includes the annual accounts for 2003, as submitted by the Executive Board and advised upon and proposed by the Audit Committee. We recommend that shareholders adopt these accounts. A total dividend for 2003 of EUR 0.40 per common share is proposed. In what has been a year of real progress for AEGON under difficult circumstances, we would like to express our gratitude to the Executive Board and all members of the AEGON community worldwide for their strong commitment and dedication towards growing AEGON’s business. We thank them for their unabated energy and professionalism in responding to difficult and rapidly changing markets. The Hague, March 11, 2004 On behalf of the Supervisory Board, Morris Tabaksblat, chairman ACKNOWLEDGEMENT SUPERVISORY BOARD CHANGES IN COMPOSITION ANNUAL ACCOUNTS AND DIVIDEND EXECUTIVE BOARD CHANGES IN COMPOSITION AEGON GROUP ANNUAL REPORT 2003 11