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Notes to the Consolidated Financial Statements
13.3 Related parties
Executive Board
1 1 H Heineken N.V. Report of the Report of the Financial Sustainability Other
J- J- Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Identification of related parties
The following parties are considered to be related to Heineken N.V.:
- Key management personnel: the Executive Board and the Supervisory Board
- Parent company Heineken Holding N.V. and ultimate controlling party Mrs. de Carvalho-Heineken
(refer to 'Shareholder Information')
- Associates and Joint ventures of Heineken N.V.
- Shareholder with significant influence Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA)
- HEINEKEN pension funds (refer to note 9.1)
- Employees of HEINEKEN (refer to note 6.4)
Key management remuneration
In millions of
2020
2019
Executive Board
9.9
10.8
Supervisory Board
1.3
1.5
Total
11.2
12.3
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 incentive (STI) and a Long-term incentive
(LTI). The STI is based on financial and operational measures (75%) and on individual leadership measures
(25%) as set by the Supervisory Board at the beginning of the year. Refer to note 6.5 for information related to
the LTI component. The separate Remuneration Report is stated on pages 55-65.
As at 31 December 2020, Mr. R.G.S. van den Brink held 4,379 Company shares and Mrs. L.M.
Debroux held 63,330 Company shares (2019: Mrs. L.M. Debroux 45,318).
2020
2019
R.G.S. van
L.M.
J.F.M.L. van
J.F.M.L. van
L.M.
In thousands of
den Brink2
Debroux5
Boxmeer1,3,4,6
Total
Boxmeer
Debroux
Total
Fixed salary
631
737
500
1,868
1,250
850
2,100
Short-term incentive
2,223
1,080
3,303
Matching share entitlement
505
245
750
Long-term incentive
396
(235)
1,597
1,758
2,323
1,201
3,524
Pension contributions
154
179
120
453
762
167
929
Other emoluments
80
154
5,536
5,770
49
183
232
Total
1,261
835
7,753
9,849
7,112
3,726
10,838
1 Stepped down as CEO and Chairman of the Executive Board on 1 June 2020.
2 Appointed on 24 April 2020 as member of the Executive Board and on 1 June 2020 as CEO and Chairman of the Executive Board.
3 In 2020, an estimated tax penalty of €7.0 million to the Dutch tax authorities was recognised in relation to the remuneration of Mr. J.FM.L. van Boxmeer.
This tax was an expense to the employer and therefore not included in the table above.
4 In 2020, the accrual for the long-term incentive plans for Mr. J.F.M.L. van Boxmeer (LTI plan 2019-2021 and 2020-2022) have been recognised in full.
5 The reversal of the LTI plan 2018-2020 accrual (due to the cancellation it will not vest and will not be paid out) and the decline in the LTI plan 2019-2021 (due to
declining performance), has resulted in a negative long-term incentive expense in 2020.
6 Other emoluments include the end of service payment for Mr. J.F.M.L. van Boxmeer.
In response to the COVID-19 impact on HEINEKEN's business and as announced on 22 April 2020, the
Executive Board has voluntarily decided to reduce their base salary by 20% between May and December 2020.
In addition the Supervisory Board has decided that there will not be a Short-term incentive (STI) pay-out for
the performance year 2020 and that the LTIP 2018-2020 will not vest (refer to note 6.5 for more information).
The matching share entitlements for each year are based on the performance in that year. The Executive
Board members receive 25% of their STI 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 STI in (investment) shares.
All (investment) shares are restricted for sale for five calendar years, after which they are matched 1:1 by
(matching) shares. Following the decision not to pay out the STI relating to the performance year 2020, no
investment shares were issued this year for the members of the Executive Board.
