Compensation, shareholdings and loans

The compensation of the Board of Directors and Management Board is regulated and reviewed by the Nomination and Compensation Committee periodically.

The Board of Directors regulates the compensation, allocation of shares and granting of loans to the Board of Directors, while the Board of Directors’ Nomination and Compensation Committee regulates such matters for the Management Board.

For the year 2007, the members of the Board of Directors received a guaranteed compensation, as well as a compensation for participation in the respective Committees, as follows:

The members of the Management Board receive an income with a fixed and a profit-linked component and have the possibility to participate in the Employee Share Purchase and Option Plan.

Remuneration accrued for and paid to current members of the Board of Directors and the Management Board of KNI

The total remuneration accrued for and paid to members of the Board of Directors and the Management Board in financial year 2007 amounted to CHF 21.0 million, of which CHF 19.2 million were paid to the executive member of the Board of Directors and the members of the Management Board, and CHF 1.8 million to the non-executive members of the Board of Directors.

Further details on the renumeration accrued for and paid to the members of the Board of Directors and the Management Board of KNI can be found in note 13 (renumeration report) to the 2007 financial statements of Kuehne + Nagel International AG.