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Ahold Annual Report 2003
Financial Statements
Ryöppönen's employment agreement is otherwise terminated, a possible reappointment will take place in 2008.
The employment agreement may be terminated by the Company with a notice period of six months and by
Mr. Ryöppönen with a notice period of three months. If (1) the Company decides to terminate the employment prior
to Mr. Ryöppönen reaching pensionable age for reasons other than for cause and (2) if Ahold experiences a change
of control and Mr. Ryöppönen's employment is terminated by Ahold or by him as a result, Mr. Ryöppönen will
receive a sum equal to the six month total of his gross base salary at the time of termination and his average bonus
over the prior three years.
The Company's employment agreement with Mr. Wakkie, dated October 9, 2003, provides for a base salary of
EUR 500,000 per year and a bonus, as well as participation in the Company's stock option plan. The bonus will be
calculated based on financial and qualitative targets set by the Supervisory Board, the target bonus being one time
his base salary for each year and a maximum bonus of 125% in a situation of outperforming the targets. In addition,
Mr. Wakkie is entitled to receive a grant of 150,000 of Ahold's common shares, 75,000 shares in December 2004
and 75,000 shares in December 2005 subject to Mr. Wakkie being employed by Ahold on those respective dates.
Mr. Wakkie participates in the Ahold pension plan. Unless Mr. Wakkie's employment agreement is otherwise
terminated, he will retire in 2008. The employment agreement may be terminated by Ahold with a notice period
of three months and by Mr. Wakkie with a notice period of three months.
Mr. Andreae joined the Corporate Executive Board in 1997. Mr. Andreae's 2003 base salary amounted to
EUR 643,599. Through year-end 2001, Mr. Andreae's bonus was a multiple of USD 165,000, which multiple was
calculated based on Ahold's earnings per share growth. Starting 2002, Ahold agreed with Mr. Andreae that his
bonus would be based on EVA improvement of Ahold. The target bonus amounted to 125% of base salary. Effective
February 20, 2004 Mr. Andreae is no longer a member of the Corporate Executive Board.
Mr. de Raad joined the Corporate Executive Board in 2001. Mr. de Raad's 2003 base salary amounted to
EUR 643,599. In 2001, Mr. de Raad's bonus was a multiple of USD 165,000, which multiple was calculated based
on Ahold's earnings per share growth. Starting 2002, Ahold agreed with Mr. de Raad that his bonus would be based
on EVA improvement of Ahold, and the target bonus amounted to 125% of base salary. Mr. De Raad will retire as
member of the Corporate Executive Board on January 7, 2005.
In 2001, Mr. Grize joined the Corporate Executive Board. The 2003 base salary amounted to USD 890,000.
Ahold agreed with Mr. Grize this his bonus, starting 2002, would be based on EVA improvement of Ahold and Ahold
USA, and the target bonus amounts to 125% of base salary. Mr. Grize will retire as member of the Corporate
Executive Board in April 2006.
The Company's employment agreement with Mr Eustace, dated March 5, 2003, provides for a term of six
to 12 months. At the end of the first six-month period Ahold, in consultation with Mr. Eustace, agreed to continue
Mr. Eustace's employment until the financial fundamentals of Ahold were stabilized. The employment agreement
provides for a base salary of EUR 805,000 per year, as well as a stock grant (immediately after the start date of
his employment) of 100,000 of Ahold's common shares. In addition, Mr. Eustace is entitled to a discretionary
bonus to be determined by the Supervisory Board. In May 2003 Ahold paid to Mr. Eustace a tax settlement due
to a delay in the grant of contractually agreed shares an amount of EUR 412,750. Mr. Eustace's employment
start date was March 10, 2003, and he was officially appointed in the Corporate Executive Board at the General
Meeting of Shareholders of May 13, 2003. His employment with Ahold terminated on December 19, 2003.
At year-end 2003, Corporate Executive Board members held the following shares and other interests in Ahold:
Common Shares
A.C. Moberg (appointed to Board September 4, 2003)
H. Ryöppönen (appointed to Board September 4, 2003)
P.N. Wakkie (appointed to Board November 26, 2003)
W.J. Grize (appointed to Board September 1, 2001)
333,333
200,0001
1,287
9,731
16,149
76,666
M.P.M de Raad
J.G. Andreae
Total
637,166
1 Includes 100,000 restricted shares previously granted to Mr. Ryöppönen, of which 50,000 shares will vest on July 1, 2004 and the other 50,000 shares will vest on December 31, 2004.
