Report of the Report of the Financial Other Contents Overview Executive Board Supervisory Board statements information 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 labour market peer group data and internal pay relativities. The annual base salaries for 2014 were EUR1,150,000 for the CEO and EUR650,000 for the CFO. These annual base salaries will remain unchanged for 2015 for the CEO and the current CFO. Subject to her appointment to the Executive Board, the 2015 annual base salary for Mrs. Laurence Debroux will be EUR610,000 (cf. Part III of this Remuneration Report). Short-term variable pay The short-term variable pay (STV) is designed to drive and reward the achievements of ElEINEKEN's annual performance targets. Through its payout in both cash and investment shares it also drives and rewards sound business decisions for El EINEKEN's long-term health while aligning Executive Board and shareholder interests at the same time. The target STV opportunities for both 2014 and 2015 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 El EINEKEN'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 payout for 2014 is, and for 2015 remains, subject to four performance measures with egual weights: Organic Revenue Growth, Organic Net Profit beia Growth, Free Operating Cash Flow and individual leadership measures. 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 the payout is zero, whereas beyond maximum performance it is capped at 200 per cent of payout at target. 51 Heineken N.V. Annual Report 2014

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2014 | | pagina 53