Notes:
6 Salaries and benefits
7 Remuneration
118
Ahold Annual Report 2003
Financial Statements
Included in operating income 2003 is a loss of EUR 136 relating to the loss on divestments. In South America, a
loss was recorded of EUR 90, in Asia Pacific a loss was recorded of EUR 45, in the U.S. a loss was recorded of
EUR 3 and in Europe-other a gain of EUR 2 was recorded. The divestments are discussed in Note 3 in detail. In
2002 operating income included loss on related party default guarantee of EUR 372 relating to South America
which was recorded in the Other activities segment 2002. This loss is discussed in detail in Note 9.
During 2003, 2002 and 2001, net sales excluding intersegment sales attributable to The Netherlands
amounted to EUR 10,160, EUR 10,119 and EUR 9,720, respectively. During 2003, 2002 and 2001, tangible and
intangible assets attributable to The Netherlands amounted to EUR 1,351, EUR 1,388 and EUR 1,378, respectively.
Labor cost is included in cost of sales, selling expenses and general and administrative expenses and is as follows:
2003
2002
2001
Salaries and wages
5,849
6,771
6,055
Pension costs
199
167
116
Other social security charges
1,074
1,132
1,022
7,122
8,070
7,193
Remuneration of the Corporate Executive Board members, including former members
Amounts in this note are in EUR thousands, unless otherwise stated.
Value of
Base Bonuses Bonuses benefits Total Total Total
(EUR 000s) salary paid in 2003 accrued 2003 Pensions Allowances7 in kind8 2003 2002 2001
A.C. Moberg (employed effective
May 5 and appointed to the Board
effective September 4, 2003) 981 - 1,792 - 62 174 3,009n
H. Ryöppönen (employed effective
August 18 and appointed to the
Board effective September 4, 2003) 377 500 92 42 4 58 1,07311
P.N. Wakkie (employed effective
October 15 and appointed to the
Board effective November 26, 2003) 102 - - 38 2 - 142
W.J. Grize (appointed to the Board
effective September 1, 2001) 7852 8334 2264 455 57 64 2,420 3,996 434
M.P.M. de Raad 6442 - 05 235 9 - 888 1,940 1,703
J.G. Andreae (resigned from the
Board effective February 20, 2004) 6442 - 05 251 9 - 904 1,814 1,647
D.G. Eustace (employed effective
March 10 and appointed to the Board
effective May 13, 2003 and resigned
from the Board effective
December 19, 2003) 1,0639 - 650 - 7 - 1,720n
C.H. van der Hoeven (resigned from
the Board effective March 10, 2003) 7271 2' 3 - -6 156 8 - 891 2,456 2,238
A.M. Meurs(resigned from the
Board effective March 10, 2003) 4481 2' 3 - -6 93 2 - 543 1,799 1,628
J.L. Miller (appointed September 1,
2001 and resigned from the
Board effective May 13, 2003) 6581' 2 - -6 (1,799)10 22 61 (1,058) 6,488 296
A.S. Noddle (until August 31, 2002) ------- 1,954 2,670
R.G. Tobin (until August 31, 2001) - -- -- -- - 5,729
Total6,429 1,333 2,760(529)182357 10,532 20,447 16,345
1 Including final vacation payment.
2 In 2003 the base salary did not increase. Differences may appear due to fluctuations in exchange rates.
3 Including a lump sum payment for the statutory notice period required under Dutch law.
4 Relates to targets 2002. Bonus entitlement with respect to 2003 is EUR 0.
5 Board member qualifies for a bonus over 2002 of EUR 461. Settlement will take place with overpaid bonuses 2001 and 2000, due to recalculation of these bonuses based on Ahold's
restated 2001 and 2000 results. Bonus entitlement with respect to 2003 is EUR 0.
6 Bonuses and re-claims of overpaid bonuses as a result of Ahold's restated results of 2001 and 2000 are subject to arbitration for former Board members Van der Hoeven and Meurs
and a pending lawsuit for former Board member Miller. See Note 30 for more detail.
7 Allowances mainly include allowances towards private medical insurance and/or representation allowance. For the U.S. national Board members it may include country club membership,
temporary living expenses and spouse travel. Mr. Moberg also received a contractually agreed allowance of EUR 55 for pensions in lieu of participation in a pension scheme.
8 Value of benefits in kind may include provided accommodation due to primary residence situated abroad, tax planning assistance and travel expenses.
9 Including EUR 413 for tax settlement due to a delay in the grant of contractually agreed shares.
10 Due to the resignation post-retirement benefits that did not vest.
11 Board members Moberg, Ryöppönen and Eustace received share grants of 250,000, 200,000 and 100,000 shares, respectively. The value of these shares is not included in this table.
The grants to Moberg and Ryöppönen were subject to certain terms and conditions as included in their employment agreements.
