Notes to the consolidated financial statements
134
32 Share-based compensation (continued)
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Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2015
Outstanding at
the beginninc
of2015
Granted1,3
Vested2
Forfeitec
Outstanding at
the end
of 2015
Other employees
2010 grant
1,134,601
103,845
1,228,454
9,992
2011 grant
2,164,108
14,930
145,747
97,989
1,935,302
2012 grant
4,920,518
22,240
2,659,211
168,934
2,114,613
2013 grant4
3,973,069
31,244
205,183
271,561
3,527,569
2014 grant5
3,352,984
146,288
97,774
289,247
3,112,251
2015 grant5
3,224,687
36,457
217,588
2,970,642
Subtotal Management Board members
1,419,368
301,116
423,610
102,877
1,193,997
Total number of shares
16,964,648
3,844,350
4,796,436
1,158,188
14,854,374
1 For the five-year 2010 grant, the number of shares allocated in 2015 represents the additional number of shares allocated based on the final TSR ranking and the actual number of matching shares related to the 2010 grant. For
shares allocated for partial vestings as a result of the TSR ranking. For the 2013 and 2014 grants the number also includes additional shares granted in 2015. For the 2015 grant, the number of shares allocated represents
2 The vesting date of the five-year 2010 grant, the matching shares related to the 2010 grant and the three-year 2012 grant was February 27, 2015. The Euronext closing share price was €16.77 on February 27, 2015.
3 The grant date fair value of the matching shares is expensed over the five-year vesting period. This table presents the matching shares as awarded in the year of vesting. The total number of matching shares granted up to and outstanding at
4 The 2013 grant includes the special purpose plan as described above. Under this program, 123,000 shares were granted in 2013, of which 41,000 vested in 2013, 41,000 in 2014 and 41,000 in 2015.
5 The 2014 grant includes the special purpose plan as described above. Under this program, 21,000 shares were granted in 2014, of which 7,000 vested in 2014, 7,000 vested in 2015 and 3,000 canceled in 2015. At
vest in 2016.
6 The 2015 grant includes the special purpose plan as described above. Under this program, 61,200 shares were granted in 2015, of which 20,400 vested in the same year. At
2017
ie 2011-2014 grants, the numbers represent the additional number of
e number of shares originally granted for the 2015 grant.
3 end of the 2015 is 219,328 (2014: 169,496).
end of 2015, 4,000 shares under this program were outstanding and will
end of 2015, 40,800 shares under this program were outstanding, of which 20,400 will vest in 2016 and 20,400 in
Valuation model and input variables
The weighted average fair value of the shares granted in 2015, for all eligible participants including Management Board members, amounted to €18.15, €15.71 and €18.17 per share for the conditional shares, TSR
performance shares and RoC performance shares, respectively (2014: €12.41, €11.80 and €12.41, 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, which considers the likelihood of Ahold's TSR ending at various ranks as well as the expected share price at each
rank. The most important assumptions used in the valuations of the fair values were as follows:
2015
2014
Opening share price at grant date
19.65
13.96
Risk-free interest rate
(0.2)%
0.4%
Volatility
18.5%
19.3%
Assumed dividend yield
2.7%
3.9%
Expected volatility has been determined based on historical volatilities for a period of three years.
