15 Heineken N.V. Annual Report 2004 Report of the Supervisory Board
Pension arrangements
The pension arrangement is executed by the Stichting Pensioenfonds Heineken.
Executive Board members: Messrs. Bolland, Van Boxmeer and Hooft Graafland
The pension arrangement for these Executive Board members is based on a hybrid system combining
final pay and defined contribution elements. The pension benefit age is 65. Between age 62 and 65
a pre-pension is payable accrued at a rate of 1.081% of the salary up to €43,807 (2004) and 1.0135%
for fixed salary in excess of this ceiling.
Up to a fixed salary of €43,807 (2004), a final pay arrangement is applicable. The underlying accrual
rate is 2.25% per annum. For fixed salary in excess of the ceiling a defined contribution promise is
applicable. Death after retirement benefits are financed out of accrued old age pension effectively
reducing the old age pension accrual to 1.75% if a partner benefit is accrued.
The employee contribution amounts to 2% of fixed salary in excess of €43,807 (2004).
Chairman and Mr. Biiche
The pension arrangements for Mr. Ruys, Chairman, and Mr. Biiche are based on a defined benefit plan.
The Chairman has a pension arrangement that equates to a pension benefit of 65% of fixed salary at
the date of retirement. The employee contribution amounts to 2% of fixed salary in excess of €43,807
(2004). The partner pension is 70% of the old age pension.
Mr. Biiche has a pension arrangement under the Austrian Brau Union Pension Fund, that currently
equates to a benefit of 78% of fixed salary at the date of retirement. The partner pension is 50% of the
old age pension.
Valuation of individual Pension Liabilities
The table below provides an overview of the pension expense per individual Executive Board member
assessed in accordance with the funding system currently used in the Netherlands and Austria
respectively. These are deemed to equal the finance cost to the company as referred to in the Dutch
Corporate Governance Code.
Pension expense per Executive Board member (accrued locally)
in euros
Ruys 147,500
Bolland 91,200
Van Boxmeer 86,400
Hooft Graafland 92,700
Biiche 102,500
The pension policy is under review.
Loans
Heineken's policy is not to provide loans to its Chairman and Executive Board members.
There are currently no loans outstanding.
Employment contracts
Employment contracts for the Chairman and the members of the Executive Board are entered
into for an indefinite period of time. The contract for Mr. Biiche will end in 2006. There are no
specified notice periods and no exit arrangements included.
Payments to former members of the Executive Board in 2004
In 2004 Mr. Vuursteen was entitled to a long-term bonus payment of €401,092 for the period
2001-2002 and Mr. Lubsen was entitled to a long-term bonus payment of €375,839. With respect
to past Executive Board members an amount of €240,000 was paid on behalf of pensions.
