Note 8
John Rishton
The Company's employment agreement with John Rishton,
dated September 14, 2005, provides for a base salary of
EUR 725 per year, participation in the annual cash incentive
plan, as well as participation in the Company's equity based
long-term incentive program (GRO) (see Note 9). The
at-target payout under the annual cash incentive plan is 100
percent of the base salary and is capped at 125 percent in
case of extraordinary performance. On the starting date of
his employment, John Rishton was granted 100,000 Ahold
shares to compensate the loss of long-term perquisites from
his previous employer. The vesting of these shares is
conditional upon three years employment. John Rishton's
grant of shares will vest immediately in the event that his
employment agreement is terminated within the three-year
vesting period. Unless his employment agreement is
otherwise terminated, he will be eligible for reappointment
in 2010. In the event that he is not reappointed, the
employment agreement terminates and John Rishton is
entitled to a severance payment corresponding to one year's
base salary. In the event the Company terminates John
Rishton's employment agreement for reasons other than
cause, John Rishton is entitled to a severance payment
equal to one year's base salary. John Rishton's employment
agreement may be terminated by the Company with a notice
period of 12 months and by John Rishton with a notice
period of six months. John Rishton is offered the
same pension plan available to all other participants
in the Netherlands.
Peter Wakkie
The Company's employment agreement with Peter Wakkie,
dated October 9, 2003, provides for a base salary of
EUR 600 per year (as of the year 2006), participation in the
annual cash incentive plan, as well as participation in the
Company's equity based long-term incentive program (GRO)
(see Note 9). The at-target payout under the annual cash
incentive plan is 100 percent of the base salary and is
capped at 125 percent in case of extraordinary performance.
In addition to participation in the regular equity program
(GRO), Peter Wakkie participates in the Company's one-off
2004-2006 Performance share Grant plan (see Note 9).
Unless Peter Wakkie's employment agreement is otherwise
terminated, he will retire in 2008. Peter Wakkie's
employment agreement does not include any severance
arrangement and the agreement may be terminated with
a notice period of three months by either Peter Wakkie or
the Company. For Peter Wakkie the old pension plan
remains in place.
Remuneration
Amounts in the table below represent the remuneration for Corporate Executive Board members for the period they were part
of the Corporate Executive Board, either as member or acting member.
Share-
based
Accrued
Base
compen-
termination
Total
Total
Total
EUR in thousands
salary
Bonuses1
sation2
Pensions3 benefits
Other4
2006
2005
2004
A.C. Moberg
1,500
1,689
437
J. Rishton
725
573
704
P.N. Wakkie
600
474
338
H. Ryöppönen (resigned from the
Board effective August 31, 2005)
M.P.M. de Raad (resigned from the
Board effective January 7, 2005)
W.J. Grize (resigned from the
Board effective December 31, 2004)
J.G. Andreae (resigned from the
Board effective February 23, 2004)
Total 2,825 2,736 1,479
122 3,748 3,368 3,753
201 - 133 2,336
315 - 15 1,742 1,559 1,619
- 583 2,662
- 19 2,5045
- - 2,5886
- - - - - 202
516 - 270 7,826 5,529 13,328
1 Bonuses represent accrued bonuses to be paid in the following year.
2 The amounts included in the table for share-based compensation represent the share-based compensation expense calculated under IFRS 2 related to the grants to Corporate Executive
Board members. The fair value of share-based compensation grants is expensed on a straight-line basis over the vesting period of the grants. The 2006 expenses include EUR 294 and
EUR 221 for Anders Moberg and Peter Wakkie, respectively, related to the 2004-2006 PSG plan. The PSG plan ended on December 31, 2006 and based on the relative Total Shareholder
Return performance no shares have vested under this plan. For John Rishton, the fair value of the 100,000 Ahold shares granted to him on the starting date of his employment is
included. For more information on share-based compensation programs, see Note 9.
3 Pension costs are the total net periodic pension costs.
4 "Other" mainly includes representation allowances, employer's contributions to social security plans, relocation expenses, allowances for private medical insurance and benefits in kind
such as tax advice and medical expenses. Anders Moberg received a contractually agreed allowance of EUR 83 for pensions in lieu of participation in a pension plan.
5 Includes a termination benefit of EUR 637 that Theo de Raad received at the date of his retirement and a single pension premium payment of EUR 323 related to his retirement.
6 Includes a termination benefit of EUR 880 (USD 1,195) that Bill Grize received at the date of his retirement.
Ahold Annual Report 2006 75
