Dutch legislative changes. The arrangements will
be based on the principle of defined contribution.
The retirement age is 65, but individual Executive
Board members may retire earlier with a reduced
level of benefit. Contribution rates are designed to
enable an Executive Board member to retire from
the company at the age of 62 with a benefit that
represents about 62 percent of pre-retirement
base salary. Given the age profile of the current
Executive Board members financing has been put
in place to allow retirement for current Executive
Board members at age 60 with 60 percent of base
salary, whilst maintaining the underlying principle
of 62 percent at age 62.
S ares
A at 31 December 2005, the members of the
E ecutive Board did not hold any of the Company's
si ares, convertible bonds or option rights. One of
the Executive Board members held 790 shares of
H ineken Holding N.V. as at 31 December 2005.
reements for early retirement of Executive Board
n 'mbers
P r 1 October 2005 Mr. Ruys resigned as Chairman
o the Executive Board. Mr. Ruys remains employed
Ui til 20 April 2006. He will reach the pensionable
a e under the prevailing pension scheme on 1 July
2 07. The pensionable salary is to be increased
with inflation correction with retroactive effect
since 1 January 1999 up to and including 1 January
2007. Mr. Ruys shall be entitled to a monthly salary
over the period from 1 October 2005 up to 20 April
2006, as well as thereafter, a monthly amount by
way of severance arrangement over the period
between 20 April 2006 up to 1 July 2007 equal
to one twelfth of €634,000 (adjusted for inflation).
In addition, but only in respect of the financial
years 2005 and 2006 Mr. Ruys shall receive an
annual bonus related to dividend distribution.
The annual bonus 2005 amounts to €618,000.
The calculation of the annual bonus 2006 will be
done pro rata to the number of months in service.
Mr. Ruys shall also be entitled to a long-term bonus
related to actual net profit in the financial years
2004, 2005 and 2006. The calculation of the long-
term bonus will be done pro rata to the number
of months in service. The annual bonuses in respect
of the financial years 2004, 2005 and 2006 are
deducted from the figure calculated on this
basis, but this cannot lead to a negative amount.
Mr. Büche resigned as member of the Executive
Board per 1 October 2005. Mr. Büche remains
employed with Brau Union AG until 31 December
2006. Mr. Büche will reach the pensionable age
under the prevailing pension scheme of Brau Union
AG on 31 December 2006. In October-December
Heineken N.V. - Annual Report 2005
