Philips’ supervisory board is so pleased with the functioning of chairman Gerard Kleisterlee that it wants him to stay on for four more years when his current contract expires in 2008. He must stay at the helm to ensure the continuing success of the company, the board said on Monday.

In the company’s annual report, published today, it emerged that Kleisterlee earned €2.5m last year, including a €350,000 bonus stemming from the sale of the semi-conductor division last year. Under his leadership, Philips not sold off its semi-conductors and focused more on its successful medical systems division.