Philips management will not receive bonuses for 2022

AMSTERDAM (Reuters) -Dutch health technology company Philips' top management will not take any bonuses for 2022 after a global recall of respiratory devices resulted in a 70% plunge in the company's market value, it said on Tuesday.

Given the company's performance and negative experience of shareholders and other stakeholders, the current management board has waived any 2022 annual incentive payouts, the company said in its annual report.

"2022 was a very disappointing year for Philips and its stakeholders," it said.

Former Chief Executive Frans van Houten, who left the company after he was replaced by Roy Jakobs in October last year following the recall, did not waive his short-term bonus of 208,370 euros ($222,351) for 2022, the report showed.

Philips last year clashed with shareholders who unsuccessfully urged the supervisory board to scrap bonuses for Van Houten and other executives for 2021, the year in which the recall started.

In its annual report, Philips said it was in negotiations with the U.S. Department of Justice over a settlement relating to the recall.

($1 = 0.9371 euros)

(Reporting by Bart MeijerEditing by David Goodman and Barbara Lewis)