Peer group A new global labour market peer group was adopted by the Annual General Meeting of Shareholders in 2011. The median of this global labour market peer group is a reference point for the target compensation of the CEO and CFO. Each year, the Remuneration Committee evaluates the peer group to ensure it remains relevant and may recommend adjustments to the Supervisory Board. For 2011 the peer group consisted of the following companies: Anheuser-Busch InBev (B) Carlsberg (DK) Coca-Cola (US) Colgate-Palmolive (US) Danone (F) Diageo (UK) Flenkel (G) Kimberley-Clark (US) KraftFoods (US) L'Oréal (F) PepsiCo (US) Philips (NL) SABMiller (UK) Sara Lee (US) Unilever (NL) Two companies from the labour market peer group, KraftFoods and Sara Lee have announced to split into two independent publicly traded companies in 2012. Based on our selection criteria established in 2011 (sector, revenue and geographic spread), the Supervisory Board will decide in 2012 on their replacement. Base salary Base salaries are determined by reference to a relevant peer group of companies and are targeted to be at the median level of the peer group. Every year, peer group and base salary levels are reviewed and the Remuneration Committee may propose adjustments to the Supervisory Board for approval taking into account external peer group data and internal pay relativities. For 2012 the peer group has been defined as mentioned above. The base salaries for both 2011 and 2012 are EUR1,050,000 for the CEO and EUR650.000 for the CFO. Short-term variable pay The short-term variable pay (STV) is designed to drive and reward the achievement of FHEINEKEN's annual performance objectives. Through its payout in both cash and investment shares it also drives and rewards sound business decisions for the long-term health of Fleineken N.V. and aligns Executive Board and shareholder interest. The target STV opportunities for both 2011 and 2012 are 140 per cent of base salary for the CEO and 100 per cent of base salary for the CFO. The STV opportunity is for 75 per cent based on financial and operational measures and targets, and for 25 per cent on individual leadership measures and targets. At the beginning of the year, the Supervisory Board establishes the new performance measures, their relative weights and corresponding targets based on HEINEKEN's business priorities. These measures and their relative weights are reported in the Annual Report up front. The STV awards for 2012 will be subject to four performance measures, viz. Organic Net Profit beia Growth (20 per cent), Free Operating Cash Flow (20 per cent), Organic Gross Profit beia Growth (35 per cent) and individual leadership targets (25 per cent). At the end of the year, the Supervisory Board reviews the Company's and individual performance against the pre-set measures and targets, and approves the STV payout levels based on the performance achieved. The performance on each of the measures is reported in the Annual Report after the end of the performance period. Heineken N.V. Annual Report 2011 61

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2011 | | pagina 63