66
Pension and other contract terms
Ahold
Annual Report 2011
Groupata glance
Performance
(Governance
Financials
Investors
Remuneration continued
As a result of the two abovementioned factors (the relation between the annual cash incentive
and the GRO program, and the fact that the maximum annual cash incentive multiplier is capped
at 1.25), the maximum grant value is 187.5 percent of base salary.
Scenario analyses are prepared regularly to estimate possible future payout levels.
These analyses are included in the annual evaluation of the remuneration policy, each of
its components, and the mix of these components (the risk profile of the package).
Three-year component
The shares conditionally granted (with a performance hurdle at grant) under this component vest
after three years of continued employment. The performance hurdle at grant is the multiplier of
the Annual Incentive Plan of the preceding year, which is used to determine the number of shares
to be conditionally granted. Corporate Executive Board members must retain these shares for a
period of five years from the grant date. They are allowed to sell part of the shares to finance tax
due at the date of vesting.
Five-year component
The shares conditionally granted (with a performance hurdle at both grant and vesting) under
this component vest at the end of the performance period of five years. Performance at vesting
is measured using TSR (share price growth and dividends paid over the performance period) as
benchmarked against the TSR performance of the peer group. The number of shares that vest
depends on Ahold's ranking within the peer group. No shares will vest if Ahold ranks below the
seventh position of the peer group, which consists of 12 companies (including Ahold). The table
below indicates the percentage of conditional shares that could vest based on Ahold's ranking
within the peer group.
Corporate Executive Board Members
Rank
Rank
Rank
Rank
1
150%
4
90%
7
25%
10
0%
2
130%
5
70%
8
0%
11
0%
3
110%
6
50%
9
0%
12
0%
An independent external advisor determines the ranking against the peer group based on
TSR performance.
Pension
The pension plan for Corporate Executive Board members is identical to the pension provision for
all other employees of Ahold in the Netherlands and is referred to as a career average pension
plan. For every service year at Ahold, a pension amounting to 2.25 percent of the pension-
bearing base salary will be granted. The normal retirement age is 65. Under this plan, each
Corporate Executive Board member pays a pension premium contribution of approximately one
percent of his or her pension-bearing salary. Upon appointment to the Corporate Executive
Board, Chief Financial Officer Kimberly Ross, who resigned from Ahold on November 22, 2011
and Chief Operating Officer Ahold USA Lawrence Benjamin, who retired on January 31, 2011,
continued their participation in the U.S. pension plan.
