31 Related party transactions
Ahold Annual Report 2012 127
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
Compensation of key management personnel
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 consist of the members of the Corporate Executive Board (CEB) and the members of the Supervisory Board as of the year the members' appointment was
approved by the General Meeting of Shareholders. The total compensation of key management personnel amounts to €8,596 thousand (2011€4,936 thousand). This includes a one-off
crisis levy in The Netherlands of €773 thousand (201 1nil) following the Budget Agreement 2013 Tax Measures Implementation Act. The one-off crisis levy is €773 thousand for members of
the CEB and nil for the members of the Supervisory Board.
Employment contracts with individual Corporate Executive Board members
Dick Boer
In 2012, the Company provided Dick Boer with a base salary of €965,000 on an annual basis, participation in the annual cash incentive plan and participation in the Company's equity-
based long-term incentive plan (GRO - see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 125% in case of extraordinary
performance. Unless Boer's employment agreement is otherwise terminated, he will be eligible for reappointment at the annual General Meeting of Shareholders in April 2015. In the event
that the Company terminates his employment agreement for reasons other than cause or because he is not reappointed by the shareholders, Boer is entitled to a severance payment equal
to one year's base salary. His employment agreement may be terminated by the Company with a notice period of 12 months and by Boer with a notice period of six months. Boer participates
in Ahold's Dutch Pension Plan.
Jeff Carr
In 2012, the Company provided Jeff Carr with a base salary of €600,000 on an annual basis, participation in the annual cash incentive plan and participation in the Company's equity-based
long-term incentive plan (GRO - see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 125% in case of extraordinary performance.
Furthermore, Carr receives a housing allowance of €7,000 net per month for the first term of four years. Unless Carr's employment agreement is otherwise terminated, he will be eligible for
reappointment at the annual General Meeting of Shareholders in April 201 5. In the event that the Company terminates his employment agreement for reasons other than cause or because
he is not reappointed by the shareholders, Carr is entitled to a severance payment equal to one year's base salary. His employment agreement may be terminated by the Company with a
notice period of 12 months and by Carr with a notice period of six months. Carr participates in Ahold's Dutch Pension Plan.
Lodewijk Hijmans van den Bergh
In 2012, the Company provided Lodewijk Hijmans van den Bergh with a base salary of €530,000 on an annual basis, participation in the annual cash incentive plan and participation
in the Company's equity-based long-term incentive plan (GRO - see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 125% in
case of extraordinary performance. Unless Hijmans van den Bergh's employment agreement is otherwise terminated, he will be eligible for reappointment in 2014. In the event that the
Company terminates his employment agreement for reasons other than cause or because he is not reappointed by the shareholders, Hijmans van den Bergh is entitled to a severance payment
equal to one year's base salary. His employment agreement may be terminated by the Company with a notice period of 12 months and by Hijmans van den Bergh with a notice period of six
months. Hijmans van den Bergh participates in Ahold's Dutch Pension Plan.
James McCann
In 2012, the Company provided James McCann with a base salary of €600,000 on an annual basis, participation in the annual cash incentive plan and participation in the Company's
equity-based long-term incentive plan (GRO - see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 125% in case of extraordinary
performance. Furthermore, McCann receives a housing allowance of €7,000 net per month for the first term of four years. Unless McCann's employment agreement is otherwise terminated,
he will be eligible for reappointment at the annual General Meeting of Shareholders in April 2015. In the event that the Company terminates his employment agreement for reasons other than
cause or because he is not reappointed by the shareholders, McCann is entitled to a severance payment equal to one year's base salary. His employment agreement may be terminated
by the Company with a notice period of 12 months and by McCann with a notice period of six months. McCann participates in Ahold's Dutch Pension Plan.
