Corio has been advised of the judgement by the external arbitration committee regarding the compensation of mr. Th.W. Wernink following his resignation.
In advance of the publication of the details regarding mr. Th.W. Wernink’s remuneration in the Annual Report 2003, we herewith advise that mr. Th.W. Wernink will receive a contractual compensation over 2003 of € 320,480, a one-off payment amounting to € 225,014 as determined by the arbitrators and a bonus over 2002 to the amount of € 75,342, as determined according to the formula used within Corio. These amounts are gross amounts. Furthermore Corio will make a payment of € 23,000 in legal costs incurred by mr. Th.W. Wernink and Corio will pay interest over the abovementioned amounts.
It now appears that mr. Th.W. Wernink has, of his own accord made statements to the
financial press concerning this matter, therefore Corio would like to take this opportunity to provide further elucidation on this matter.
In September 2002, mr. Th.W. Wernink, in his role as Chairman of the Management Board, advised the Chairman of the Supervisory Board that an unworkable situation had arisen within the Management Board. At that time it also became apparent, that the Management Board had agreed on a path, through an external organisation consultant, to try to resolve the situation. After an investigation by the Supervisory Board whereby all parties concerned were heard, it was then decided, together with the Management Board, that this process would be continued, prior to a possible intervention by the Supervisory Board. Both the external organisation consultant and the Management Board felt there were possibilities to resolve the issue. The Supervisory Board requested the then Vice-Chairman, mr. J.D. Bax, to follow this process closely. In December 2002, the organisation consultant concluded that it was not be possible to come to a workable situation within the Management Board and advised the Supervisory Board to come to a different composition of the Management Board. After careful consideration, the Supervisory Board decided to part ways with mr. Th.W. Wernink. In order not to damage either mr. Th.W. Wernink’s or Corio’s reputation unnecessarily, parties agreed to communicate that mr. Th.W. Wernink, after 10 years as Chairman of the Management Board, intended to resign at the AGM 2003. Mr. Th.W. Wernink agreed to this, on the condition that he would be paid a suitable compensation. In Corio’s opinion, mr. Th.W. Wernink’s demands were excessive, upon which and at Corio’s suggestion, it was decided to let arbitration determine the value of the compensation. The hearing by the arbitration committee took place on 24 November 2003 and all parties have been advised of its judgement.
In 2003 Corio took a provision for the amount as demanded by mr. Th.W. Wernink. The now awarded amount of € 225,014 is significantly lower than that demanded by mr. Th.W. Wernink and will therefore not affect Corio’s 2003 annual results.