Notes to the consolidated financial statements
126
31 Related party transactions (continued)
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
Remuneration of the Management Board by member
Direct remuneration
Deferred remuneration
thousand
Base salary
Bonuses2
Other3
Total direct
remuneration
Share-based
compensation4
Pensions5
Total
remuneration6
Dick Boer
2014
987
444
13
1,444
1,214
(125)
2,533
2013
975
868
12
1,855
1,114
433
3,402
Jeff Carr
2014
658
296
147
1,101
678
48
1,827
2013
615
547
154
1,316
615
257
2,188
Lodewijk Hijmans van den Bergh1
2014
544
245
1,654
2,443
1,031
(48)
3,426
2013
537
478
16
1,031
545
212
1,788
James McCann
2014
658
296
1,213
2,167
773
(39)
2,901
2013
650
579
414
1,643
665
239
2,547
Total 2014
2,847
1,281
3,027
7,155
3,696
(164)
10,687
Total 2013
2,777
2,472
596
5,845
2,939
1,141
9,925
Remuneration of the Executive Committee including Management Board
The table below specifies the remuneration of the ExCo, comprising the Management Board members as listed above and the additional ExCo members who were not part of the Management Board.
thousand
2014
2013
Base salary
4,399
3,183
Bonuses2
1,979
2,821
Other3
3,837
865
Share-based compensation4
4,930
3,983
Pensions5
(747)
1,320
Total remuneration6,7
14,398
12,172
1 Lodewijk Hijmans van den Bergh, Chief Corporate Governance Counsel and member of the Management Board and Executive Committee, will step down on March 12015. Ahold has agreed to pay his remuneration until the end of 2015. He will receive a severance payment amounting to one
year's base salary (€544,000), and he will remain entitled to the 2015 EIP and GRO. Outstanding shares under the GRO plan will vest over the term of employment in accordance with the applicable plan rules. An estimate of the remuneration costs relating to the period after March 1, 2015, until
December 312015, has been recognized in 2014 (Other €1,641,000 and Share-Based Compensation €434,000) on the basis that he will be employed until the end of 2015. An estimate of additional wage tax of €1.2 million on severance payments due in accordance with Dutch tax laws,
calculated on the basis of employment until the end of 2015, is excluded from "Total remuneration" as presented in the tables above.
2 Bonuses represent accrued bonuses to be paid in the following year.
3 Except for the amount for Lodewijk Hijmans van den Bergh, which is described under footnote 1 above, "Other" mainly includes tax compensation (tax equalization charges for expatriates), allowances for housing expenses, relocation costs, international school fees, employer's contributions to social
security plans, benefits in kind such as tax advice, medical expenses, and the associated tax gross up. Included in "Other" for James McCann in 2014 is tax compensation of €969,000, of which €164,000 relates to the 2013 tax year.
4 The fair value of each year's grant is determined on the grant date and expensed on a straight-line basis over the vesting period. The expense for 2014 reflects this year's portion of the share grants over the previous five years (2010 to 2014). The share-based compensation expense also includes the
expense related to the shares under the special purpose plan as described in Note 32. Under this program 105,000 shares were granted in 2013 to ExCo members that were not part of the Management Board, of which 35,000 shares vested in 2014 (2013: 35,000). The total share-based
compensation expense in 2014 for these ExCo members is €1,234,000 (2013: €1,044,000) of which €459,000 (2013: €792,000) relates to the special purpose plan and €775,000 (2013: €252,000) to the grants under the GRO program.
5 Pension costs are the total net periodic pension costs. During 2014, Ahold amended its pension plan in the Netherlands. For more details refer to Note 23.
6 The crisis levy of 16% of the wages from current employment (including any bonuses) that employers paid for their employees during 2013, insofar as such wages exceeded €150,000, came into effect in 2012 following the Budget Agreement 2013 Tax Measures Implementation Act and was extendec
through 2013 in the 2014 Tax Plan. The total crisis levy accrued for the Management Board members in 2013 was €707000 and is excluded from "Total remuneration" as presented in the tables above. The crisis levy was €403,000, €94,000, €189,000 and €21,000 for Dick Boer, Jeff Carr,
Lodewijk Hijmans van den Bergh and James McCann, respectively. The total crisis levy accrued for the ExCo members that were not part of the Management Board was €51,000 in 2013.
7 The ExCo became effective on September 12013. On August 21, 2013, the Supervisory Board appointed Hanneke Faber and Sander van der Laan as member of the ExCo, effective September 12013. The Supervisory Board appointed Abbe Luersman as member of the ExCo, effective
November 1, 2013. On January 15, 2015, it was announced that Sander van der Laan, CEO Albert Heijn and member of the Executive Committee, will step down on February 1, 2015. Wouter Kolk, currently Executive Vice President Specialty Stores and New Markets at Albert Heijn, is the successor
of Sander van der Laan as CEO of Albert Heijn, and member of the Ahold Executive Committee.
