Annual cash Plan; ExCo Incentive Plan
Equity-based program: Global Reward
Ahold at a glance
The Management Board members participate in the
ExCo Incentive Plan (EIP). The EIP uses three equally
weighted financial measures: net sales growth
(30%), operating margin (30%) and operating cash
how (30%) and one non-financial performance
measure (10%) that relates to Responsible Retailing as
The at - target payout of the EIP as a percentage of
base salary is 100%, contingent on full achievement
of the objectives, with a cap at 150% of the
Ahold does not disclose the actual targets per
performance measure, as this is considered
commercially sensitive information.
The EIP also includes a non-financial performance
measure in addition to the quantitative financial
performance measures. This non-financial measure
relates to our Responsible Retailing strategic
ambitions. Targets set under this non-financial
performance measure are qualitative. The score
under the non-financial component is linked to the
performance of the financial components. If the
financial multiplier is zero, the score on the non-
financial component will also be zero (regardless of
the achieved score on the non-financial component),
resulting in no payout.
2014 EIP Performance measures
Actual EIP 2012
Actual EIP 2013
Actual EIP 2014'
1 2014 EIP represents accrued bonuses to be paid in 2015
and subject to shareholder approval.
Global Reward Opportunity (GRO) is Ahold's broad-
based, long-term equity incentive program, offered to
approximately 5,000 associates globally. Under the
GRO program, shares are granted through a three-
year program. Participants in the GRO program
benefit when the value they have created is reflected
in the Company's share price.
Under the GRO program, three types of shares are
granted: one type of conditional share and two types
of performance shares.
Annual Report 2014
Conditional shares are shares awarded with a
performance hurdle at grant and no performance
hurdle at vesting. Performance shares are awarded
with either a Return on Capital performance hurdle
at vesting or with a Total Shareholder Return hurdle
The at- target value of the shares to be granted is
divided by the average share price over the six-month
period preceding the grant date to calculate the
number of shares to be granted.
Scenario analyses are prepared regularly to estimate
possible future payout levels.
2014 Management Board GRO Grant Value
CEO CFO CCGC COO
The 2014 GRO grant value consists of a one-third conditional
grant value with an 89% multiplier plus the at- target RoC anc
TSR performance grants.