54 Remuneration Report (continued) Pensions Compensation rights on termination of employment/service agreement Loans Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information CEO target pay mix 2016-2017 Below threshold performance At threshold performance At target performance At/beyond max performance CFO target pay mix 2016-2017 Below threshold performance Fixed pay Variable pay At threshold performance At target performance At/beyond max performance The members of the Executive Board participate in a Capital Creation Plan. In such a plan the Executive Board member receives employer contributions, for pension capital accrual, as taxable income. As of 2015, Dutch fiscal legislation introduced a cap of EUR 100,000 on the pensionable salary for tax-qualified pension plans, implying that beyond this salary level pensions can no longer be accrued in a tax-qualified way. As a consequence, the pension plans for new top executives under Dutch employment contract below Executive Board have been changed into a taxable capital creation employer contribution of 18% of base salary, minus the maximum tax-exempt employer contribution that can still be invested into a tax-qualified defined-contribution scheme (which contribution the employer provides as well). As of 2015, the same arrangement applies to new members of the Executive Board as well, hence to our current CFO, with the understanding that as a non-Dutch national she receives the full 18% contribution in the form of taxable income. For the CEO the same capital creation arrangement as for 2014 remained in force, since the existing top executives below the Executive Board at that time were compensated on an individual basis for the aforementioned fiscal salary cap on pensions as from 2015, thereby making a change in the CEO's capital creation scheme irrelevant. If the Company gives notice of termination of the employment agreement of Mr. Van Boxmeer for a reason which is not an urgent reason ('dringende reden') within the meaning of the law, the Company shall pay severance compensation to Mr. Van Boxmeer on expiry of his employment agreement. This severance compensation shall be set on the basis of the notion of reasonableness taking into account all the circumstances of the matter, including whether Mr. Van Boxmeer shall be bound by a non-competition obligation and whether any allowance is paid by the Company in relation to this non-competition obligation. In case of dismissal for cause ('ontslag met gegronde reden') whereby the cause for dismissal concerns unsatisfactory functioning of Mr. Van Boxmeer, the severance compensation cannot exceed one year's base salary. If the Company gives notice of termination of the service agreement of Mrs. Debroux for a reason which is not an urgent reason ('dringende reden') within the meaning of the law, or decides not to extend the service agreement upon its expiry, or if the AGM does not re-appoint Mrs. Debroux as member of the Executive Board for a subsequent term, the Company shall pay Mrs. Debroux an amount equal to two years of base salary (in the event of termination during or upon expiry of Mrs. Debroux's first four-year term), or an amount equal to one year's base salary (in the event of termination during or upon expiry of any subsequent term), respectively. HEINEKEN does not provide loans to the members of the Executive Board.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 55