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.