Notes to the Consolidated Financial Statements (continued)
33. Related parties
Identification of related parties
Key management remuneration
Report of the
Report of the
Annual Report 2016
HEINEKEN's parent company is Heineken Holding N.V. HEINEKEN's ultimate controlling party is Mrs. de Carvalho-Heineken. Our shareholder structure
is set out in the section 'Shareholder Information'.
In addition, HEINEKEN has related party relationships with its associates and joint ventures (refer to note 16), HEINEKEN pension funds (refer to
note 26), Fomento Económico Mexicano, S.A.B. de CV (FEMSA), employees (refer to note 25) and with its key management personnel (the Executive
Board and the Supervisory Board).
In millions of EUR
Total 14.0 14.8
The remuneration of the members of the Executive Board consists of a fixed component and a variable component. The variable component
is made up of a Short-term variable pay (STV) and a Long-term variable award (LTV). The STV is based on financial and operational measures (75%)
and on individual leadership measures (25%) as set by the Supervisory Board. For the LTV award we refer to note 27. The separate Remuneration
Report is stated on pages 50-58.
As at 31 December 2016, Mr. Jean-Frangois van Boxmeer held 217,276 Company shares and Mrs. Laurence Debroux held 7,069 Company shares
(2015: Mr. Jean-Frangois van Boxmeer 179,838, Mrs. Laurence Debroux 681).
In thousands of EUR
Short-Term Variable pay
Matching share entitlement
Long-Term Variable award
Extraordinary share award/
In 2015, an estimated tax penalty of EUR 2.8 million to the Dutch tax authorities was recognised in relation to the remuneration of Mr. René Hooft Graafland. This tax was an expense
to the employer and therefore not included in the table above.
The matching share entitlements for each year are based on the performance in that year. The Executive Board members receive 25% of their
STV pay in (investment) shares. In addition they have the opportunity to indicate before year-end whether they wish to receive up to another
25% of their STV pay in (investment) shares. All (investment) shares are restricted for sale for five calendar years, after which they are matched
1:1 by (matching) shares. For 2016 the Executive Board members did not elect to receive additional (investment) shares, hence the 'Matching
share entitlement' in the table above is based on a 25% investment. In 2015 the investment was 50% for both Executive Board members. From an
accounting perspective the corresponding matching shares vest immediately and as such a fair value of EUR 1.1 million was recognised in the 2016
income statement. The matching share entitlements are not dividend-bearing during the five calendar year holding period of the investment shares.
Therefore, the fair value of the matching share entitlements has been adjusted for missed expected dividends by applying a discount based on the
dividend policy and vesting period.