BsimEiHHta
30%
30%
30%
10%
64
Remuneration (continued)
Annual cash plan: ExCo Incentive Plan
Equity-based program: Global Reward
Opportunity (GRO)
Ahold at a glance I Business review
Governance
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 described below.
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
base salary.
Ahold does not disclose the actual targets per
performance measure, as this is considered to be
commercially sensitive information,
The EIP 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.
Actual EIP
thousands
2015 EIP Performance measures
0.3 0.6 0.9 1.2 1.5
€868
CEO
€444
€1,350
CFO
COO
€547
€296
€899
€579
€296
€899
Actual EIP 2013
Actual EIP 2014
Actual EIP 20151 2
1 2015 EIP represents accrued annual cash incentives to
be paid in 2016 and subject to shareholder approval.
2 We reported strong financial results during the year,
reflecting good performance across our key markets
and formats. The strong financial performance consisted
of robust sales that exceeded our targets, combined with
consistent operating margin and operating cash flow of
slightly below and above target, respectively. In addition
to our financial performance, being a responsible retailer
remains a key priority. We are pleased with our progress
in 2015 and that we were able to meet most of our
previously established responsible retailing targets anc
commitments. This strong performance results in an overall
weighted EIP performance of 135% of target.
Operating
margin
Net sales
growth
Operating
cash flow
Responsible
retailing
Ahold
Annual Report 2015
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.
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
at vesting.
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.
2015 Management Board GRO grant value
thousands
€1,924
2.5
2.0
1.5
1.0
€816
€1,050
CEO CFO COO
The 2015 GRO grant value consists of a conditional grant
value with a 45% multiplier plus the at - target RoC and TSR
performance grants.
