O
Notes to the consolidated financial statements
31 Share-based compensation continued
69,848
70,536
159,284
12,386
22,398
84,278
59,974
48,452
101,134
A.D. Boer
57,926
79,558
105,348
5,079,536 - 142,294
3,722,980 - 47,392
- 4,589,770 11,821
242,238 4,695,004
261,354 3,414,234
194,231 4,383,718
9,223,594 5,039,814
201,507
697,823 13,364,078
Other conditional shares
Financial statements
AHOLD ANNUAL REPORT 2008 98
The following table summarizes the status of the GRO program during 2008 for the individual Corporate Executive Board members
and for all other employees in the aggregate (with each year's grant consisting of an equal number of shares granted under the three-
year and five-year program):
Outstanding at the Outstanding at the
beginning of 20081 Granted1 Settled2 Forfeited end of 20081
J.F. Rishton
2006 grant
2007 grant
2008 grant
69,848
70,536
159,284
K.A. Ross
2006 grant
2007 grant
2008 grant
12,386
22,398
84,278
P.N. Wakkie
2006 grant
2007 grant
2008 grant
59,974
48,452
101,134
2006 grant
2007 grant
2008 grant
57,926
79,558
105,348
Other employees
2006 grant
2007 grant
2008 grant
Total number of shares
1 Represents number of shares originally granted.
2 Includes increases/(decreases) based on TSR performance.
Valuation model and input variables
The weighted average fair value of the conditional shares granted in 2008 amounted to EUR 9.00 and EUR 8.93 per share for the
three-year and five-year component, respectively (2007: EUR 9.28 and EUR 9.05, respectively). The fair value of the three-year
component is based on the share price on the grant date, reduced by the present value of dividends expected to be paid during the
vesting period. The fair value of the five-year component is determined using a Monte Carlo simulation model. The most important
assumptions used in the valuation were as follows:
Percent
2008
2007
Weighted average assumptions
Risk-free interest rate
4.1
4.2
Volatility
30.7
32.4
Assumed annual forfeitures
6.0
6.0
Assumed dividend yield
2.1
CO
1—1
Expected volatility has been determined as the average of the implied volatility and the historical volatility, whereby the
extraordinarily volatile month after February 24, 2003 has been excluded.
In addition to the shares granted under the GRO program, Ahold granted an at-target number of 950,000 conditional shares in
2007. The fair value per share, determined in the same manner as the three-year GRO shares, was EUR 9.44. The shares vested at
the end of 2008, after two years of continued employment. Half of these shares were subject to a performance condition. The final
number of performance shares will be determined in 2009, based on the average annual incentive multiplier for 2007 and 2008.
www.ahold.com/reports2008
