Notes to the consolidated financial statements Annua l Report 2014 125 31 Related party transactions Compensation of key management personnel Ahold at a glance I Business review I Governance I Financials Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. In 2013, the Company announced a new leadership structure. A broader Executive Committee (ExCo) has been installed, replacing the Corporate Executive Board and the Ahold Executive Team. The ExCo consists of the Management Board (formerly referred to as the Corporate Executive Board) and three other ExCo members. The Company considers all members of the ExCo and the Supervisory Board to be key management personnel as defined in IAS 24 "Related parties." The total compensation of key management personnel amounts to €16,456 thousand (2013: €13,755 thousand). This includes an estimate of additional wage tax on severance payments due in accordance with Dutch tax laws in the amount of €1.2 million. The 2013 amount included a crisis levy in the Netherlands of €758 thousand following the Budget Agreement 2013 Tax Measures Implementation Act that was extended in the 2014 Tax Plan. The crisis levy was €758 thousand for members of the ExCo and nil for the members of the Supervisory Board in 2013. Employment contracts with individual Management Board members Dick Boer In 2014, the Company provided Dick Boer with an annual base salary of €987,000, participation in the annual cash incentive plan and participation in the Company's equity-based long-term incentive plan (GRO - see Note 32The at - target payout under the annual cash incentive plan is 100% of base salary and is capped at 150% in case of extraordinary performance. Unless Dick 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, Dick 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 Dick Boer with a notice period of six months. Dick Boer participates in Ahold's Dutch Pension Plan. Jeff Carr In 2014, the Company provided Jeff Carr with an annual base salary of €658,000, 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 150% in case of extraordinary performance. Furthermore, Jeff Carr receives a housing allowance of €7,000 net per month for the first term of four years. Unless Jeff Carr's employment agreement is otherwise terminated, he will be eligible for reappointment at the annual General Meeting of Shareholders in April 2016. In the event that the Company terminates his employment agreement for reasons other than cause or because he is not reappointed by the shareholders, Jeff 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 Jeff Carr with a notice period of six months. Jeff Carr participates in Ahold's Dutch Pension Plan. Lodewijk Hijmans van den Bergh In 2014, the Company provided Lodewijk Hijmans van den Bergh with an annual base salary of €544,000, 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 150% in case of extraordinary performance. Lodewijk Hijmans van den Bergh participates in Ahold's Dutch Pension Plan. On October 14, 2014 it was announced that Lodewijk Hijmans van den Bergh will step down as Chief Corporate Governance Counsel. This will take effect as of March 1, 2015 and his employment relationship with Ahold will terminate as of December 312015. James McCann In 2014, the Company provided James McCann with an annual base salary of €658,000, participation in the annual cash incentive plan and participation in the Company's equity-based long-term incentive plan (GRO - see Note 32The at - target payout under the annual cash incentive plan is 100% of base salary and is capped at 150% in case of extraordinary performance. Furthermore, James McCann receives a housing allowance of $10,000 net per month for the first term of four years. Unless James McCann's employment agreement is otherwise terminated, he will be eligible for reappointment at the annual General Meeting of Shareholders in April 2016. In the event that the Company terminates his employment agreement for reasons other than cause or because he is not reappointed by the shareholders, James 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 James McCann with a notice period of six months. James McCann participates in Ahold's Dutch Pension Plan.

Jaarverslagen | 2014 | | pagina 29