Notes to the consolidated financial statements
29 Financial risk management and financial instruments continued
250
250 33,000
22 38 75 1 444
407
45
30 Related party transactions
Compensation of key management personnel
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 92
The notional amounts of the derivative financial instruments outstanding as of December 28, 2008 are summarized below.
The summary is based on the currency of the exposures being hedged and includes the gross amount of all notional values for
outstanding contracts (with all amounts expressed in millions of the respective currencies).
CHF PLN CZK USD SEK GBP JPY EUR
million million million million million million million million
Interest rate swaps:
After five years
Cross-currency interest rate swaps:
Between one and five years
After five years
Foreign currency forwards and swaps:
Within one year
Total notional amounts derivative financial instruments
22 38 75 1 444 501 33,000 452
In 2008, a loss of EUR 66 million (2007: loss of EUR 11 million) is included in the consolidated income statement under fair value
gains (losses) on financial instruments in relation to fair value changes of derivatives that do not qualify for hedge accounting
treatment or in relation to ineffective portions of qualifying hedging instruments.
Gains and losses recognized in cash flow hedging reserve in equity as of December 28, 2008 will be released to the consolidated
income statement at various dates over a period of 23 years from the balance sheet date.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities
of the Company as a whole. The Company determined that key management personnel consists of members of the Supervisory
Board, members and acting members of the Corporate Executive Board, the continental Chief Operating Officers and Senior Vice
Presidents reporting directly to a Corporate Executive Board member, acting in that capacity.
Employment contracts with individual Corporate Executive Board members
John Rishton
The Company's revised employment agreement with John Rishton to account for his appointment as CEO of the Company, dated
November 20, 2007, provides for a base salary of EUR 945,000 per year. It also provides for participation in the annual cash
incentive plan, as well as participation in the Company's equity-based long-term incentive program (GRO - see Note 31). 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 common shares to
compensate the loss of long-term perquisites from his previous employer. The vesting of these shares was conditional upon three
years of employment. Unless John Rishton's employment agreement is otherwise terminated, he will be eligible for reappointment
in 2010. In the event the Company terminates John Rishton's employment agreement for reasons other than cause or because
he is not reappointed, 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 twelve months and by John Rishton with a notice period
of six months. John Rishton participates in Ahold's Dutch Pension Plan.
