Ill
Historical information
In millions of EUR 2007 2006 2005
Present value of the defined benefit obligation 2,916 3,043
F.iir value of plan assets(2,535) (2,397) (2,268)
Deficit in the plan 381646853
Experience adjustments arising on plan liabilities (4) (159)
Experience adjustments arising on plan assets169
27. Share-based payments - Long-Term Incentive Plan
On 1 January 2005 Heineken established a performance-based share plan (Long-Term Incentive Plan LTIP)
for the Executive Board. On 1 January 2006 a similar LTIP was established for senior management.
The Long-Term Incentive Plan for the Executive Board includes share rights, which are conditionally
awarded to the Executive Board each year and are subject to Heineken's Relative Total Shareholder
Return (RTSR) performance in comparison with the TSR performance of a selected peer group.
The LTIP share rights conditionally awarded to senior management each year is for 25 per cent subject
to Heineken's RTSR performance and for 75 per cent subject to internal performance conditions.
At target performance, 100 per cent-of the shares will vest. At maximum performance 150 per cent
of the shares will vest.
The performance period for share rights granted in 2005 was from 1 January 2005 to 31 December 2007.
1 Fie performance period for share rights granted in 2006 is from 1 January 2006 to 31 December 2008.
1 ie performance period for share rights granted in 2007 is from 1 January 2007 to 31 December 2009.
The vesting date for the Executive Board is within five business days, and for senior management the
I test of 1 April and 20 business days, after the publication of the annual results of 2007, 2008 and 2009
respectively.
5 Heineken N.V. will fulfil the tax payment obligations related to vesting on behalf of the individual
e mployees, the amount of Heineken N.V. shares to be received by the Executive Board and senior
r lanagement will be a net amount.
ie terms and conditions of the share rights granted are as follows:
ant date/employees entitled
Based on
Number share price
Vesting conditions
Contractual
life of rights
Share rights granted to
ecutive Board in 2005
fare rights granted to
I ecutive Board in 2006
tare rights granted to
s nior management
2006
F iare rights granted to
ecutive Board in 2007
S tare rights granted to
s nior management
i 2007
43,724 24.53
40,049 26.78
352,098 26.78
32,265 36.03
281,400 36.03
Continued service
and RTSR performance
Continued service
and RTSR performance
Continued service, 75%
internal performance
conditions and 25%
RTSR performance
Continued service
and RTSR performance
Continued service, 75%
internal performance
conditions and 25%
RTSR performance
3 years
3 years
3 years
3 years
3 years
749,536
he number of shares in the table above is based on target performance.
Heineken N.V. Annual Report 2007