Notes to the Consolidated Financial Statements (continued)
6.5 Share-based payments
O O Qs
Report of the Executive Board
Report of the Supervisory Board
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019 ^77^
Other Information
In millions of
Note
2019
2018
Wages and salaries
2,536
2,444
Compulsory social security contributions
386
386
Contributions to defined contribution plans
58
51
Expenses/(income) related to defined benefit plans
9.1
78
105
Expenses related to other long-term employee benefits
12
(9)
Equity-settled share-based payment plan
6.5
31
48
Other personnel expenses
779
724
3,880
3,749
Accounting policies
Personnel expenses are recognised when the related service is provided. For more details on accounting
policies related to post-retirements obligation and share-based payments refer to note 9.1 and
6.5 respectively
HEINEKEN has the following share-based compensation plans: Long-term incentive plan, Extraordinary
share plan and Matching share plan (as part of the Short-term incentive plan of the Executive Board).
Long-term incentive plan (LTIP)
HEINEKEN has a performance-based Long-term incentive plan (LTIP) for the Executive Board and senior
management. Under this LTIP, share rights are conditionally awarded to participants on an annual basis.
The vesting of these rights is subject to the performance of Heineken N.V. on specific internal performance
conditions and continued service over a three calendar year period by the employee. The share rights are
not dividend-bearing during the performance period.
The performance conditions for LTIP are Organic Net Revenue growth, Organic Operating Profit beia growth,
Earnings Per Share beia growth and Free Operating Cash Flow.
At target performance 100% of the awarded share rights vest. At threshold performance 50% of the
awarded share rights vest and at maximum performance, 200% of the awarded share rights vest.
The grant date, fair market value (FMV) at grant date, service period and vesting date for the LTIP are
visualised below:
Overview LTIP
LTI Plan
31-12-2016
31-12-2017
31-12-2018
31-12-2019
31-12-2020
31-12-2021
2017-2019
grant date
FMV €66.88
performance period
vesting date
2018-2020
grant date
FMV €82.46
performance period
vesting date
2019-2021
grant date
FMV €72.48
performance period
O-
-O vesting date
Total LTIP expenses
recognised in 2019
