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.