Senior executives at electronics giant Philips were given sharply higher bonuses in 2012 than 2011, the company’s annual report shows.

Chief executive Frans van Houten was given a bonus of €1.3m on top of his basic salary of €1.1m, the report, published on Monday, said. In 2011, his bonus totalled €363,000. Van Houten joined the company in April 2011.

Financial chief Ron Wirahadiraksa’s bonus rose from almost €150,000 in 2011 to almost €525,000, on top of a salary of €600,000. Other executives had similar rises.

The company is proposing to introduce a new system of long-term bonuses from 2013 and the issue is on the agenda for the May AGM.