Notes to the
consolidated
financial statements
continued
32 Share-based compensation continued
Overview
Business review
Governance
Financials
Investors
Expected volatility has been determined based on historical volatilities for a period of three years.
Valuation model and input variables
The weighted average fair value of the shares granted in 2016, for all eligible participants including Management Board members, amounted to
€20.44, €20.13 and €20.13 per share for TSR performance shares, RoC performance shares and Sustainability performance shares, respectively
(2015: conditional shares €18.15, TSR performance shares €15.71 and RoC performance shares €18.17). The fair values of the RoC and Sustainable
retailing 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 Delhaize’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:
Opening share price at grant date
Risk-free interest rate
Volatility
Assumed dividend yield
Opening share price at grant date
Risk-free interest rate
Volatility
Assumed dividend yield
21.70
(0.6)%
22.2%
2.6%
21.70
(0.6)%
22.2%
2.6%
2016
21.70
(0.6)%
22.2%
2.7%
The incremental fair values of the shares converted in 2016 in the (new) Ahold Delhaize’s long-term equity-based program has been determined by
using the same models as described above. The most important assumptions used in the valuations of the incremental fair values were as follows:
2015 2014 2012
21.70
(0.6)%
22.2%
2.7%
2015
19.65
(0.2)%
18.5%
2.7%
Ahold Delhaize Annual Report 2016 ^O^
