Governance  Remuneration policy and report 106 Ex-post assessment and discretionary adjustments Terms of employment Circuit breaker Claw-back provision Pension arrangements Fixed compensation 1 For complete disclosures on Executive Board Remuneration  see pages 283 to 286. Annual Report 2013 Members of Aegon’s Executive Board are offered pension  arrangements and retirement benefits in line with local practices  in their countries of residence and the provision of the same to  executives at other multinational companies in those countries.  Similarly, benefits are offered consistent with Executive  Board members’ contractual agreements, local practices and  Where variable compensation is based upon incorrect data  (including non-achievement of performance indicators in  hindsight), or in the case of material financial restatements or  individual gross misconduct, Aegon’s Supervisory Board will have  the right to reclaim variable compensation that has already been  paid out or vested.  The fixed compensation of the Executive Board members  remained unchanged in 2013. For each performance indicator, variable compensation is only  paid if the threshold level set for that performance indicator is  reached. The Supervisory Board will ask the Compensation Committee to  review these criteria in detail at each moment of vesting and  document its findings. Based on this analysis, the Committee  may then put forward a proposal to the Supervisory Board to  adjust unvested variable compensation. Deferred variable  compensation may only be adjusted downwards. Ex-post, risk- based assessments concern deferred variable compensation, not  fixed compensation. At the end of December 2013, Aegon’s Executive Board had  two members: Executive Board Remuneration Report 1 The employment arrangements with current members of the  Executive Board contain provisions entitling them to severance  payments, should their employment be terminated as a result  of a merger or takeover. The Supervisory Board has taken  appropriate steps to ensure the contractual arrangements of  members of the Executive Board are in line with the Executive  Board Remuneration Policy.  Members of the Executive Board may terminate their  employment with a notice period of three months. If Aegon  wishes to terminate the employment of a member of its  Executive Board, then the company must give six months’ notice. Mr. Wynaendts has a contract of employment with Aegon N.V..  Mr. Button has been appointed after the new law on supervision  (‘Wet Bestuur en Toezicht’) came in to force in January 2013.  Therefore a ‘Board Agreement’ was agreed between him and  Aegon NV, rather than a contract of employment. Seperately, his  employment by Transamerica Life Insurance continues, whilst he  is seconded on an expatriate assignment to the Netherlands. Members of the Executive Board are appointed for four years,  and may then be re-appointed for successive mandates also for  a period of four years. comparable arrangements at other multinationals. Aegon does  not grant Executive Board members personal loans, guarantees  or the like, unless in the normal course of business and on terms  applicable to all employees, and only with the approval of the  company’s Supervisory Board. The Supervisory Board uses its judgment in the assessment of  the outcome of strategic/personal targets to ensure that, taken  together, they form a fair reflection of the overall performance  of the Board member over the performance period. In addition, the Supervisory Board will apply an ex-post risk  assessment to deferred payouts of variable compensation  to determine whether allocated (that is, unvested) variable  compensation should become unconditional (meaning it will  vest) or should be adjusted. This ex-post assessment will be  based on informed judgment by the Supervisory Board, taking  into account significant and exceptional circumstances that are  not (sufficiently) reflected in the initially applied performance  indicators. Implementation of this authority will be on the basis of  criteria such as: ■ Outcome of a re-assessment of the performance against the  original financial performance indicators; ■ Significant downturn in the company’s financial performance; ■ Evidence of misbehavior or serious error by the participant; ■ Significant failure in risk management; ■ Significant changes in the company’s economic or regulatory  capital base. ■ Alexander R. Wynaendts, Chief Executive Officer and  Chairman of the Executive Board. Mr. Wynaendts was  appointed member of the Executive Board in 2003 for four  years, and re-appointed in 2007. At the General Meeting of  Shareholders in 2011, Mr. Wynaendts was re-appointed for  another four years. ■ Darryl D. Button, Chief Financial Officer and member of the  Executive Board. Mr. Button was appointed member of the  Executive Board for four years at the annual General Meeting  of shareholders on May 15, 2013. Mr. Button succeeded  Mr. Nooitgedagt as Chief Financial Officer and member of  Aegon’s Executive Board.