51 Remuneration Report (continued) Summary overview of remuneration elements Labour market peer group Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information The Executive Board remuneration policy is simple and transparent in design, and consists of the following key elements: Remuneration element Description Strategic role Base salary Involves fixed cash compensation Aims for the median of the labour market peer group Facilitates attraction and is the basis for competitive pay Rewards performance of day-to-day activities Short-term variable pay Is based on achievements of annual measures, of which a weighted 75% relate to financial and operational measures for Heineken N.V. and 25% 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 period of five calendar years: - the part paid in shares is between 25% and 50% of the full gross pay, depending on the individual's choice whether, and to which extent, to exceed the mandatory 25% share investment - 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 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 Long-term variable award Is based on achievements of three-year financial targets for Heineken N.V. as specified on page 53 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 Drives and rewards sound business decisions for the long-term health of HEINEKEN Aligns Executive Board and shareholder interests Supports Executive Board retention Pensions Defined Contribution Pension Plan and/or Capital Creation Plan Provides for employee welfare and retirement needs 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 2016, the peer group consisted of the following companies: Anheuser-Busch InBev (BE) Diageo (UK) Pepsico (US) Carlsberg (DK) Henkel (DE) Pernod Ricard (FR) Coca-Cola (US) Kimberley-Clark (US) Philips (NL) Colgate-Palmolive (US) Mondelez International (US) SABMiller (UK) Danone (FR) L'Oréal (FR) Unilever (NL)

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 52