Remuneration continued
2016 Annual cash incentive
plan: EIP
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
2016 EIP Performance measures
2
CEO
CFO
€252*
3
€184*
0
400
800
1,200
l,6C
Actual EIP 2015
€444
€323* I
€296
Ahold Delhaize does not disclose the
actual targets per performance measure,
as this is considered to be commercially
sensitive information.
For the period up to the merger, the EIP uses
three equally weighted financial measures:
sales growth (30%), operating margin (30%)
and operating cash flow (30%). In addition,
one non-financial performance measure (10%)
is included that 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).
For the period after the merger, the EIP uses
the same three equally weighted financial
measures: sales growth (30%), underlying
operating margin (30%) and operating cash
flow (30%). In addition, personal objectives (10%)
are included.
The at-target payout as a percentage
of base salary is 100%, contingent on full
achievement of the objectives, with a cap at
150% of the base salary in the event of above
target performance.
For the members appointed to the Management Board in
2016, the 2016 EIP reflects a partial year.
COO
US
COO
EUR
Actual EIP 2014
Actual EIP 2016
€899
€773
€1,350
€1,271
2016 EIP represents accrued annual cash incentives to be
paid in 2017 and subject to shareholder approval of the
financial statements.
For former Ahold management board members, the EIP for
the year 2016 has been determined pro rata for the period
up to the merger and after the merger became effective.
For former Delhaize management board members, the
2016 EIP reflects a partial year and has been determined
pro rata for the period after the merger became effective.
The overall 2016 performance multiplier was 108%. This
reflects our results being modestly ahead of target. In
addition to our financial performance, being a responsible
retailer remains a key priority. We are pleased with our
progress in 2016 on our previously established responsible
retailing targets and commitments. The individual EIP
amounts also include the component linked to individual
performance. In recognition of outstanding leadership
leading up to and since the completion of the merger, the
Supervisory Board increased the EIP payout for the CEO by
11% for 2016, in line with the parameters of the Company’s
Remuneration Policy.
COO U.S. refers to the COO Delhaize America for the
period up to October 1, 2016, and the COO Ahold USA for
the period starting October 1, 2016. The EIP of the COO U.S.
has been converted from U.S. dollars into euros using the
year-to-date average exchange rate of 0.912519.
The ExCo Incentive Plan (EIP) for performance
year 2016 has been determined pro rata for
the period up to the merger between Ahold
and Delhaize and after the merger became
effective on July 24, 2016.
Deputy
CEO
Actual EIP
thousands
Operating
cash flow 30%
Non-financial
objectives 10%
Sales growth 30%
Operating
margin 30%
