Notes to the consolidated financial statements
133
32 Share-based compensation (continued)
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Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
Outstanding al
the beginninc
of 2014
Granted1,3
Vested2
Forfeitec
Outstanding at
the end
of 2014
Other employees
2009 grant
2,223,039
874,544
3,096,752
831
2010 grant
1,233,914
64,740
34,573
1,134,601
2011 grant
4,680,301
2,398,151
118,042
2,164,108
2012 grant
5,407,439
217,092
269,829
4,920,518
2013 grant4
4,339,430
95,511
270,850
3,973,069
2014 grant5
3,502,264
14,037
135,243
3,352,984
Subtotal Management Board members
1,316,651
385,494
272,760
10,017
1,419,368
Total number of shares
19,200,774
4,762,302
6,159,043
839,385
16,964,648
1 Represents the number of shares originally granted for the 2014 grant. For the five-year 2009 grant, the number of shares allocated in 2014 represents the additional number of shares allocated based on the final TSR ranking and the actual number of matching shares related to the 2009 grant.
2 The vesting date of the five-year 2009 grant, the matching shares related to the 2009 grant and the three-year 2011 grant was February 28, 2014. The Euronext closing share price was €13.52 on February 28, 2014.
3 The grant date fair value of the matching shares is expensed over the five-year vesting period. In this table the matching shares are presented as awarded in the year of vesting. The total number of matching shares granted up to and outstanding at the end of the 2014 is 169,496 (2013: 192,034).
4 The 2013 grant includes the new program as described above. Under this new program 123,000 shares were granted in 2013, of which 41,000 vested in 2013 and 41,000 in 2014. At the end of 2014, 41,000 shares under this program were outstanding, and will vest in 2015.
5 The 2014 grant includes the new program as described above. Under this new program 21,000 shares were granted in 2014, of which 7,000 vested in the same year. At the end of 2014, 14,000 shares under this program were outstanding, of which 7,000 will vest in 2015 and 7,000 in 2016.
Valuation model and input variables
The weighted average fair value of the shares granted in 2014, for all eligible participants including Management Board members, amounted to €12.41€11.80 and €12.41 per share for the conditional shares, TSR
performance shares and RoC performance shares, respectively (2013: €10.66, €8.72 and €10.64, respectively). The fair values of the conditional shares and the RoC performance shares are based on the Black-Scholes
model. The fair values of the TSR performance shares are determined using a Monte Carlo simulation model. The most important assumptions used in the valuations of the fair values were as follows:
2014
2013
Opening share price at grant date
13.96
11.95
Risk-free interest rate
0.4%
0.3%
Volatility
19.3%
17.6%
Assumed dividend yield
3.9%
4.2%
Expected volatility has been determined based on historical volatilities for a period of three years.
