119
Notes to the Consolidated Financial Statements (continued)
33. Related parties
Identification of related parties
Key management remuneration
Executive Board
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-
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Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
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 (referto note 16), HEINEKEN pension funds (refer
to note 26), Fomento Económico Mexicano, S.A.B. de CV (FEMSA), employees (referto note 25) and with its key management personnel (the
Executive Board and the Supervisory Board).
Best practice provisions 2.7.3, 2.7.4 and 2.7.5 of the Dutch Corporate Governance Code of 8 December 2016 have been observed where relevant in
regard to transactions with related parties.
In millionsof 2017 2016
Executive Board 13.3 13.0
Supervisory Board 1.0 1.0
Total 14.3 14.0
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. Forthe LTV award we referto note 27. The separate Remuneration
Report is stated on pages 48-56.
As at 31 December 2017, Mr. Jean-Franqois van Boxmeer held 240,695 Company shares and Mrs. Laurence Debroux held 11,829 Company shares
(2016: Mr. Jean-Franqois van Boxmeer 217,276, Mrs. Laurence Debroux 7,069).
2017
2016
Inthousandsof
J.F.M.L. van
Boxmeer
L. Debroux
Total
J.F.M.L. van
Boxmeer
L. Debroux
Total
Fixed salary
1,200
720
1,920
1,200
720
1,920
Short-Term Variable pay
2,736
1,173
3,909
3,360
1,440
4,800
Matching share entitlement
622
266
888
751
322
1,073
Long-Term Variable award
3,623
1,739
5,362
3,204
711
3,915
Extraordinary share award/Retention bonus
22
22
Pension contributions
858
142
1,000
944
139
1,083
Other emoluments
21
163
184
21
160
181
Total
9,060
4,203
13,263
9,480
3,514
12,994
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 forfive calendar years, after which they are matched
1:1 by (matching) shares. For 201 7 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 2016 the investment was 25% for both Executive Board members. From an
accounting perspective the corresponding matching shares vest immediately and as such a fair value of €0.9 million was recognised in the 2017
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.
