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digital transformation by tracking digital and technological innovation and market movements and trends, and generate solid investment returns. 

The Board closely followed developments in the Solvency II Directive, a European Union Directive governing capital requirements, supervisory review and disclosures. On November 13, 2013, the European Parliament, the Council of the European Union and the European Commission reached an agreement on the Omnibus II Directive that amends the Solvency II Framework agreed in 2009. The starting date for the application of Solvency II is January 1, 2016. More detail on Solvency II can be found on page 11 of this annual report. 

## Strategy sessions 

The Supervisory Board’s annual strategy offsite meeting was held in Baltimore and Washington in June. The Board reviewed progress on the execution of the strategy for the three business units in the Americas – Life & Protection, Employee Services & Pensions and Individual Savings & Retirement – and the Enterprise Business Services unit. The Board and management also discussed consolidation developments in Aegon’s main markets, and the Board approved the updated financial strategy. 

In December, the Board reviewed Aegon’s Sustainability Program and noted the significant advances made in areas such as integrated reporting, responsible investing and employee volunteering. The Board also stated the need for further sustainability efforts, and its support and desire for management to develop an updated Sustainability Program in 2014. 

Throughout 2013, the Board regularly discussed aspects of Aegon’s approach to sustainability for various business issues. Further details of Aegon’s sustainability vision and progress are in the Aegon Review 2013. 

## Results and budget 

In its meeting of February 14, 2013, the Supervisory Board convened to discuss the results of the fourth quarter of 2012. In March 2013, the Supervisory Board reviewed and adopted Aegon’s 2012 Annual Report, the consolidated financial statements of Aegon N.V., and the financial statements of Aegon N.V. In May, August and November, the Supervisory Board reviewed Aegon’s first, second and third quarter 2013 results. 

In December, the Board and management reviewed the Group Plan 2014-2016, including the budget for 2014. The plan protects the company’s strategy execution, strong capital position and disciplined cost management, and gives a key role to technology and innovation to increase the frequency and quality of contact with customers. The Board supported the Group Plan and approved the budget for 2014. The Board also approved the 2014 Capital Plan and authorized the Executive Board to support Aegon’s budgeted funding needs. 

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## Legal and compliance 

In 2013, the Supervisory Board and the Audit Committee discussed with management, the General Counsel and the Group Compliance Officer a number of compliance, regulatory and legal issues from Europe, the United States and Asia. In particular, the Board discussed the judgment of the Supreme Court of the Netherlands in the so-called Koersplan case. 

In the year under review, the Chairman of the Board and the chairs of the Audit Committee and Risk Committee held discussions with officials of Aegon’s lead regulator, De Nederlandsche Bank N.V. and monitored management interface with regulators in the United States, the United Kingdom and elsewhere. 

## Educational sessions and Board review 

The Board received presentations from internal and external experts on International Financial Reporting Standards (IFRS) and other accounting topics, hedging programs, information security and re-insurance. 

As in previous years the Supervisory Board carried out an extensive Board self-evaluation, following an external evaluation in 2012. The Chairman, supported by the Company Secretary, interviewed each member of the Board on the basis of a completed written questionnaire. The review assessed the collective performance of the Board and its Committees, and the performance of the Chairman. The Supervisory Board met to review the results in the absence of management. The Board concluded that the Board and its individual members had functioned well and fulfilled their duties and responsibilities in a satisfactory manner in 2013, and had addressed the recommendations of the 2012 self-evaluation. The Board agreed further improvements relating to agenda-setting and focus areas in 2014. 

The performance of the members of the Executive Board was discussed regularly in 2013 at Executive Sessions, and at a dedicated meeting of the Board in December, at which the Board also reviewed the performance of the members of the Management Board. 

No transaction with a potential or actual conflict of interest was reported by members of the Board in 2013. 

## Supervisory Board Committees 

The Supervisory Board requires its four Supervisory Board Committees to prepare items requiring a Board decision. Each Committee’s members are drawn from the Supervisory Board. The Committees report their findings to the Supervisory Board at Supervisory Board meetings. 

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