120
31 Related party transactions continued
-
-
-
-
-
-
-
-
-
-
-
-
-
41
32 Share-based compensation
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Investors
Notes to the consolidated financial statements continued
For the year ended January 2, 2011
Amounts
Amounts
Sales to
Purchases
owed by
owed to Commitments
related
from related
related
related
to related
million
parties
parties
parties
parties
parties
ICA
22
2
10
8
Stationsdrogisterijen
16
4
JMR
7
4
1
Accounting Plaza B.V.
1
26
1
A.M.S. Coffee Trading
1
Other
3
8
2
41
Total
49
28 22
17
These unconsolidated related parties consist of:
ICA, a joint venture of Ahold in the retail business
Stationsdrogisterijen C.V., a joint venture of Ahold in the health and beauty care retail business
JMR, a joint venture of Ahold in the retail business
Accounting Plaza B.V., an associate of Ahold that renders accounting and administrative services to certain Ahold subsidiaries in the
Netherlands, Czech Republic, and Slovakia
A.M.S. Coffee Trading AG, an associate of Ahold that generated sales transactions with the Ahold Coffee Company
"Other," which includes mainly real estate joint ventures, in which Ahold has an interest, holding properties operated by Ahold, and
Loyalty Management Nederland B.V., an associate of Ahold that renders services relating to the management of customer loyalty
programs to certain Ahold subsidiaries in the Netherlands
Furthermore, the Company's post-employment benefit plans in the Netherlands and the United States are considered related parties.
For more information on these plans, see Note 23.
In 2011, Ahold's share-based compensation program consisted of a conditional share grant program called Global Reward Opportunity
(GRO). This program, introduced in 2006, replaced the Company's share option plans. In principle, plan rules will not be altered during
the term of the plans. Total 2011 GRO share-based compensation expenses were €29 million (2010: €33 million). Ahold's share-based
compensation programs are equity-settled.
The grant date fair value of the shares granted under the GRO program in 2011 was €50 million, of which €1 million related to Corporate
Executive Board members. This fair value is expensed over the vesting period of the grants adjusted for assumed annual forfeitures of
6 percent (2010: 6 percent). For the share-based compensation expenses allocable to the individual Corporate Executive Board
members, see Note 31.
GRO program
Main characteristics
Under the GRO program, Ahold shares are granted through a mid-term (three-year) and a long-term (five-year) program. The number of
conditional shares to be granted depends on the at-target value, the annual incentive multiplier of the preceding year and the average
share price for six months preceding the date of the grant. The shares are granted on the day after the annual General Meeting of
Shareholders and vest on the day after the publication of Ahold's full-year results in the third year (mid-term component) or fifth year
(long-term component) after the grant, provided the participant is still employed by Ahold. Shares granted to Corporate Executive Board
members vest after three years (mid-term component) or five years (long-term component), subject to continued employment. Corporate
Executive Board members are not allowed to sell their shares within a period of five years from the grant date, except to finance tax due at
the date of vesting. For participants other than the Corporate Executive Board members, the mid-term component of the program contains
a matching feature. For every five shares a participant holds for an additional two years after the vesting date, the participant will receive
one additional share.
