Notes to the consolidated financial statements
124 Financial statements
32. Contingencies
USA
Heineken USA and Heineken N.V. (and in certain cases other Heineken companies and Heineken Holding
N.V.) were named as defendants in purported 'class action' lawsuits filed in nine states. The lawsuits
claim that Heineken companies, along with other producers and distributors of alcoholic beverages,
had unlawfully advertised and marketed its products to underage people. Heineken has been defending
vigorously against these accusations, as Heineken companies advertise and market their products
lawfully to people of legal drinking age. In November 2007, Heineken reached agreement with the
plaintiffs of the lawsuits to finally end all of the plaintiffs' underage drinking cases.
33. Related parties
Identity of related parties
Heineken has a related party relationship with its associates (refer note 16 and 33), joint ventures
(refer note 33 and 35), Heineken Holding N.V., Heineken pension funds (refer note 26) and with its key
management personnel (Executive Board and the Supervisory Board).
Key management remuneration
In millions of EUR 2007 2006
Executive Board 4.1
Supervisory Board0.4 0.4
4.5 6.4
Executive Board
The remuneration of the members of the Executive Board comprises a fixed component and a variable
component. The variable component is made up of a Short-Term Incentive Plan and a Long-Term
Incentive Plan. The Short-Term Incentive Plan is based on an organic profit growth target and specific
year targets as set by the Supervisory Board. For the Long-Term Incentive Plan we refer to note 27.
The separate remuneration report is stated on page 62.
As at 31 December 2007 and as at 31 December 2006, the members of the Executive Board did not
hold any of the Company's shares, bonds or option rights, other than under the Long-Term Incentive
Plan aforementioned. D.R. Hooft Graafland held 3,052 shares of Heineken Holding N.V. as at
31 December 2007 (2006: 3,052 shares).
Executive Board
Short-Term
Fixed Incentive
Salary Plan
In thousands of EUR 2007 2006 2007 2006
J.F.M.L. van
750 680 1,125 592 207 93 395 192 2,477 1,557
D.R. Hooft
550 525 619 455 143 86 _j-_ - 311 238 1,623 1,304
M.J. Bolland1- 306 - 189 - 50 - 2,550 - 82 - 3,177
Total1,300 1,511 1,744 1,236 350 229 - 2,550 706 512 4,100 6,038
Long-Term
Incentive
Plan
2007 2006
Other
deferred
Benefits
2007 2006
Pension Plan
2007 2006'
Total
2007 2006
1 Stepped down from the Executive Board on 1 August 2006. Mr. Bolland was compensated with an amount of €2,550,000.
Comparatives have been adjusted to include pension entitlements related to the Short-Term Incentive Plan.
Heineken N.V. Annual Report 2007
