Remuneration Report continued
Report of the
Report of the
Financial
Other
Contents
Overview
Executive Board
Supervisory Board
statements
information
Summary overview of remuneration elements
The Executive Board's remuneration policy is simple and transparent in design, and consists of the following key elements:
Remuneration element
Description
Strategic role
Base salary
Short-term variable pay
Long-term variable award
Pensions
Involves fixed cash compensation
Aimsforthe median of the labour market
peer group
Is based on achievements of annual measures,
of which a weighted 75 per cent relate to
financial measures for Heineken N.V. and
25 per cent to individual leadership measures
Aims, at target level, for the median of the
labour market peer group
Is partly paid in cash, and partly in investment
shares with a holding restriction of five
calendar years:
- the part paid in shares is between 25 and
50 per cent of the full gross pay, depending
on the individual's choice
- the part in cash is paid net of taxes (i.e. after
deduction of withholding tax due on the full
gross pay)
Investment shares are matched on a 1:1 basis
after the holding period
Is based on achievements of three-year
financial targets for Heineken N.V.
Aims, at target level, for the median of the
labour market peer group
Is awarded through the vesting of shares,
net of taxes (i.e. after deduction of
withholding tax due on the full gross award)
Vested shares are blocked for another
two years, to arrive at a five-year holding
restriction after the date of the conditional
performance grant
Defined Contribution Pension Plan
or Capital Creation Plan
Facilitates attraction
Rewards performance
of day-to-day activities
Drives and rewards annual
HEINEKEN performance
Drives and rewards sound business
decisions for the long-term health
of HEINEKEN
Aligns Executive Board and
shareholder interests
Drives and rewards sound business
decisions for the long-term health
of HEINEKEN
Aligns Executive Board and
shareholder interests
Supports Executive retention
Provides for employee welfare
and retirement needs
Labour market peer group
A global labour market peer group was adopted by the AGM in 2011, and subsequently adjusted in 2012. The median target remuneration
of this peer group is a reference point for the target remuneration of the CEO and CFO. Each year, the Remuneration Committee validates
the peer group to ensure relevance, and recommends adjustments to the Supervisory Board if needed. For 2014, the peer group consisted
of the following companies, which will apply to 2015 as well:
Anheuser-Busch InBev (BE)
Carlsberg (DK)
Coca-Cola (US)
Colgate-Palmolive (US)
Danone (FR)
Diageo (UK)
Henkei (DE)
Kimberley-Clark (US)
Mondelëz International (US)
L'Oréal (FR)
Pepsico (US)
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Heineken N.V. Annual Report 2014
