2003 in Retrospect
principles underlying the 'Taking Heineken
to the Next Level' project.
European works council
Pursuant to the current regulations, the
Executive Board informs the European
works council, via an open dialogue, of all
relevant transnational issues in Europe.
In 2003, the Executive Board briefed the
European works council on the group's
strategy and the year's financial results.
The council was also informed of the
acquisition of BBAG, the potential reper
cussions of that acquisition for the orga
nisation and personnel in Central Europe
and the transnational consequences
of the 'Taking Heineken to the Next Level'
project.
Remuneration policy for Executive
and Supervisory Board members
The remuneration paid to the members of the Executive Board
consists of a fixed fee, an annual profit-sharing bonus and
a long-term bonus. The fixed fee and the sums which form the
basis of calculation of the annual bonus and long-term bonus
were redefined by the Supervisory Board with effect from the
iggg financial year.
The annual bonus is related to the dividend distribution,
expressed as a percentage of the nominal value of the shares.
A basic sum - €32,521 for the chairman and €ig,78o for each
member of the Executive Board - is multiplied by the number of
percentage points by which the dividend exceeds 6%.
The long-term bonus is paid whenever Heineken N.V. makes an
issue of bonus shares or undertakes a share split, which in the
past has averaged once every three years. It is calculated
on the same basic sums as for the annual bonus but, instead
of the dividend distribution, it is related to the actual net profit in
the period to which the bonus refers (in the past, therefore,
generally three years). One-third of the net profit is expressed as
a percentage of the nominal share capital (share splits being
treated as recapitalisations) and the basic sum is multiplied
by the number of percentage points by which this exceeds 6%.
The annual bonuses paid in the period concerned are deducted
from the figure calculated on this basis.
A revised remuneration policy for the members of the Super
visory Board was adopted by the General Meeting of Share
holders with effect from the 2002 financial year. The application
of this policy in practice in 2003 is discussed in the notes to the
balance sheet and profit and loss account (page 80).
A new remuneration policy for the members of the Executive
and Supervisory Boards will be developed in the course of 2004.
HEINEKEN N.V. ANNUAL REPORT 2003
