121 Notes to the Consolidated Financial Statements (continued) 33. Related parties Identification of related parties Key management remuneration Executive Board Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information 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 2016 2015 Executive Board 13.0 13.9 Supervisory Board 1.0 0.9 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). 2016 2015 In thousands of EUR J.F.M.L. van Boxmeer L. Debroux Total J.F.M.L. van Boxmeer L. Debroux D.R. Hooft Graafland* Total Fixed salary 1,200 720 1,920 1,150 421 201 1,772 Short-Term Variable pay 3,360 1,440 4,800 2,930 833 394 4,157 Matching share entitlement 751 322 1,073 1,353 385 182 1,920 Long-Term Variable award 3,204 711 3,915 2,706 158 1,825 4,689 Extraordinary share award/ Retention bonus 22 22 236 124 360 Pension contributions 944 139 1,083 723 82 33 838 Other emoluments 21 160 181 21 134 7 162 Total 9,480 3,514 12,994 9,119 2,137 2,642 13,898 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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 122