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In addition, the Risk Management and Compliance functions, together with the Human Resources and Finance functions, are responsible for the execution of the various ex-ante and ex-post measures that have been introduced by Aegon to ensure the Global Remuneration Framework and for ensuring practices are aligned with the defined risk tolerances and behaviors. In this respect, risk mitigating measures that are undertaken prior to the payout of compensation to individual employees (regardless of whether the compensation is deferred) are considered ex-ante measures. Retribution measures that are applied after payout, or concerning allocated but deferred payments (before vesting of these payments) to ensure sustainability of performance, are considered ex-post measures. 

Aegon endeavors to seek an appropriate balance of ex-ante and ex-post assessments to ensure effectiveness in both the short- and longer-term risk taking behavior of employees. 

## General compensation practices 

Aegon has a pay philosophy which is based on total compensation. This means that total remuneration for fully functioning employees is aimed at being consistent with compensation levels in the market in which it operates and competes for employees. Total compensation typically consists of base salaries and, where in line with local market practices, variable compensation. Market survey information from reputable sources is used to provide information on competitive compensation levels and practices. 

Variable compensation, if any, is capped at an appropriate level as a percentage of base pay. Usually variable compensation for senior management is paid out in cash and shares over multiple years and is subject to further conditions being fulfilled. Variable compensation already paid out may be clawed back in defined circumstances. 

In the next sections more detailed information is provided on the compensation practice for the Supervisory Board and Executive Board. 

## Supervisory Board Remuneration Policy 2013 

Aegon´s Remuneration Policy with regard to members of its Supervisory Board is aimed at ensuring fair compensation, and protecting the independence of the Board´s members. Terms and conditions for members of the Supervisory Board are part of Aegon´s broader Remuneration Policy, and are the responsibility of the company´s Compensation Committee 1 . 

Given the significant rise in the Supervisory Boards activities in combination with the results from a peer review amongst comparable Dutch and European companies, the General Meeting of Shareholders on May 15, 2013, approved amendments to the Supervisory Board Remuneration Policy as per January 2013. 

## Fees and entitlements 

Members of the Supervisory Board are entitled to the following: 

■ A base fee for membership of the Supervisory Board itself. No separate attendance fees are paid to members for attendance at the regular Supervisory Board meetings; 

■ An attendance fee for each extra Board meeting, attended in person or by video and/or telephone conference; 

■ A committee fee for members on each of the Supervisory Board’s Committees; 

■ An attendance fee for each Committee meeting attended in person or through video and/or telephone conference; 

■ An additional fee for attending meetings that require intercontinental travel between the Supervisory Board member's home location and the meeting location. 

Each of these fees is a fixed amount. Members of Aegon’s Supervisory Board do not receive any performance or equity- related compensation, and do not accrue pension rights with the company. These measures are designed to ensure the independence of Supervisory Board members and strengthen the overall effectiveness of Aegon’s corporate governance. 

Under the current policy, approved by shareholders on May 15, 2013, members of the Supervisory Board are entitled to the following fees: 

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1 Members of the Compensation Committee are as follows: Leo M. van Wijk (Chair); Irving W. Bailey II; Robert J. Routs. 

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