29. Share-based payments - Long-Term Incentive Plan
As from 1 January 2005 Heineken established a performance-based share plan (Long-Term Incentive Plan; LTIP)
for the Executive Board. As from 1 January 2006 a similar LTIP was established for senior management.
The LTIP 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 are 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 2007 was from 1 January 2007 to 31 December 2009.
The performance period for share rights granted in 2008 is from 1 January 2008 to 31 December 2010. The
performance period for share rights granted in 2009 is from 1 January 2009 to 31 December 2011.
The vesting date for the Executive Board is within five business days, and for senior management the latest
rf 1 April and 20 business days, after the publication of the annual results of 2009, 2010 and 2011 respectively.
t s Heineken N.V. will withhold the tax related to vesting on behalf of the individual employees, the amount
of Heineken N.V. shares to be received by the Executive Board and senior management will be a net amount.
he terms and conditions of the share rights granted are as follows:
ant date/employees entitled
Number*
Based on
share price
Vesting conditions
Contractual
life of rights
Share rights granted to
Continued service and
ecutive Board in 2007
32,265
36.03
RTSR performance
3 years
tare rights granted to senior
Continued service, 75% internal performance
anagement in 2007
281,400
36.03
conditions and 25% RTSR performance
3 years
tare rights granted to
Continued service and
I xecutive Board in 2008
26,288
44.22
RTSR performance
3 years
lare rights granted to senior
Continued service, 75% internal performance
anagement in 2008
263,958
44.22
conditions and 25% RTSR performance
3 years
tare rights granted to
Continued service and
(ecutive Board in 2009
53,083
21.90
RTSR performance
3 years
tare rights granted to senior
Continued service, 75% internal performance
anagement in 2009
562,862
21.90
conditions and 25% RTSR performance
3 years
he number of shares is based on target performance.
Annual Report 2009 - Heineken N.V.
