Dialogue and transparency are crucial in executive remuneration

Each year, PwC analyses the remuneration of executive and supervisory board members of Dutch listed companies (AEX, AMX and AScX). The report examines base salaries, short- and long-term incentives, and the balance between fixed and variable components. It helps boards, shareholders and other stakeholders understand trends and compare their policies to the market.

Base salaries for executives rose by an average of 3–5% in 2024, in line with broader wage growth. Total Direct Compensation (TDC) increased more sharply, especially among AEX companies, where variable components play an ever-larger role. The gap between large and smaller listed companies remains: AEX executives earn roughly two and a half times more than their AScX peers.

In 2024, supervisory board remuneration rose by between 8 to 18%, mainly because many companies reviewed their remuneration policies in 2024 as part of the mandatory four-year revision cycle. As a result, so far, the 2025 remuneration year appears to be relatively calm, with no major structural changes. ESG targets remain part of performance criteria, and their weightings have largely stayed the same.

Where 2023 was marked by changes in policy and KPIs, particularly around ESG objectives, 2025 turns out to be a year of consolidation. ‘The numbers themselves aren’t surprising,’ says Sander Schouten, Director in PwC’s Executive Reward team. ‘But the focus is shifting from figures to context. The real developments are in how organisations discuss remuneration and account for it.’

According to Schouten, the international comparison is becoming more relevant. ‘In the US and the UK, we’re seeing a shift toward higher pay levels and more flexibility for variable pay. The Netherlands is following this trend gradually, although our governance climate still acts as a brake. That helps keep pay under control, but may affect competitiveness over time.’

Additional to market trends, Frank van Oirschot, Senior Director in the Executive Reward team, highlights two tax developments that may affect company remuneration policies in the Netherlands since the latest fiscal and budget plans the Dutch government issued on ‘Prinsjesdag’: 

1. Adjustment of the Dutch lucrative interest scheme. The tax rate on lucrative interest (relevant to private equity and management participation structures) has been raised. The aim is to limit tax arbitrage in Box 2 on above-average returns from private equity investments.
2. New regime for start-up options. Employees of start-ups will now pay tax only upon the sale of shares obtained through options, not at exercise. The taxable base is reduced to 65 per cent of the proceeds, with a maximum effective tax rate of 32.2 per cent. This aims to stimulate innovation and entrepreneurship – a trend seen across Europe. 

‘These changes show the twofold approach in Dutch politics,’ says Schouten. ‘On one hand, there’s pressure to restrain top pay; on the other, the government wants to maintain an attractive climate for business and entrepreneurship.’

The Executive and non-executive remuneration survey 2025 confirms that executive pay is increasingly a societal issue. New EU regulations such as the Pay Transparency Directive and the CSRD require companies to disclose more about pay ratios, performance criteria and gender pay gaps. That demands a new way of communicating.

‘Transparency is no longer just a compliance issue,’ Schouten explains. ‘It’s a tool to build trust. Companies that clearly explain how their pay structures align with strategy and performance gain more support from shareholders, employees and the public.’

Stakeholder dialogue plays a key role in this. ‘When revising pay policies, boards should not only benchmark against peers,’ says Schouten, ‘but consider their strategy, culture and the interests of all stakeholders. That means engaging shareholders, works councils and regulators and listening carefully to their perspectives.’

Public and political sensitivity around top pay creates restraint. ‘Few companies increase executive pay significantly without a clear rationale,’ says Schouten. ‘As long as pay rises align with those in the wider organisation, there’s usually understanding. But if the gap grows too wide without justification, public debate can be harsh.’

He sees this as a form of healthy Dutch pragmatism: ‘We reward results, not effort, and we keep it proportional. That fits our culture. At the same time, we must avoid rigidity, because that could drive talent away and harm our business climate.’

Both Schouten and Van Oirschot emphasise that PwC supports organisations throughout the full remuneration journey, from design and benchmarking to legal, tax and accounting implementation. ‘We don’t just look at what’s market-aligned,’ says Schouten, ‘but what’s strategically right for the organisation and consistent with its culture. Rewarding people isn’t a spreadsheet exercise, it’s a strategic question about linking performance, culture and stakeholder trust.’

The Executive and non-executive remuneration survey 2025 marks a phase of maturity in the debate on executive pay. The figures may be steady, but the conversation is deepening. As Schouten concludes: ‘The future of remuneration isn’t solely about more or less money. It’s about explaining the “why” better. That’s where companies can truly stand out.’