Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other information
L'Oréal (FR)
Pepsico (US)
Pernod Ricard (FR)
Philips (NL)
SABMiller (UK)
Unilever (NL)
Base salary
Base salaries are determined by reference to the median base salary level of the aforementioned labour market peer group. Every
year, peer group and base salary levels are reviewed, and the Remuneration Committee may propose adjustments to the Supervisory
Board, taking into account external peer group data and internal pay relativities.
The base salaries for 2013 were EUR1,150,000forthe CEO and EUR650,000fortheCFO. These base salaries will remain unchanged
for 2014
Short-term variable pay
The short-term variable pay (STV) is designed to drive and reward the achievements of HEINEKEN's annual performance targets.
Through its payout in both cash and investment shares, it also drives and rewards sound business decisions for HEINEKEN's long-term
health whilst aligning Executive Board and shareholder interests at the same time.
The target STV opportunities for both 2013 and 2014 are 140 per cent of base salary for the CEO and 100 per cent of base salary
for the CFO. These opportunities are well aligned with the global labour market peer group medians. The STV opportunities are for
a weighted 75 per cent based on financial and operational measures, and for a weighted 25 per cent on individual leadership measures.
At the beginning of each year, the Supervisory Board establishes the performance measures, their relative weights and corresponding
targets based on HEINEKEN's business priorities for that year. The measures and their relative weights are reported in the Remuneration
Report upfront; the targets themselves are not disclosed as they are considered to be commercially sensitive.
At the end of the year, the Supervisory Board reviews the Company's and individual performance against the pre-set targets, and
approves the STV payout levels based on the performance achieved. The performance on each of the measures is reported in
gualitative terms in the Remuneration Report after the end of the performance period (cf. Part II).
The STV awards for 2013 were subject to four performance measures with egual weights, viz Organic Net Profit beia Growth,
Free Operating Cash Flow, Organic Gross Profit beia Growth, and Individual Leadership measures.
For the STV awards for 2014, the Supervisory Board has decided to replace the Organic Gross Profit beia Growth measure with Organic
Revenue Growth, since it is a better reflection of the ambition to grow the top line. As a result, the four performance measures for
the STV awards for 2014 are Organic Net Profit beia Growth, Free Operating Cash Flow, Organic Revenue Growth, and Individual
Leadership measures, all with egual weights.
For threshold, target and maximum performance, the following STV payout, as a percentage of target payout, applies:
Threshold performance - 50 per cent of target payout
Target performance -100 per cent of target payout
Maximum performance-200 per cent of target payout
Payout in-between these performance levels is on a straight-line basis. Below threshold performance, payout is zero, whereas beyond
maximum performance it is capped at 200 per cent of payout at target.
Heineken N.V. Annual Report 2013
