Remuneration continued
Pensions and other
contract terms
2016 Management Board
remuneration
Future outlook
2016 Base salary
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
CEO
CFO
0
400
800
l,2C
€446*
€329*
€280*
Members of the Management Board working
on a non-Dutch contract will be offered
pensions in line with local practices.
Loans
Ahold Delhaize does not provide loans or
advances to members of the Management
Board. Nor does the Company issue
guarantees to the benefit of members of the
Management Board.
Additional arrangements
In addition to the remuneration of the
Management Board members, a number of
additional arrangements apply. These include
expense allowances, medical insurance and
accident insurance, use of company cars and,
if applicable, expatriate allowances, which
apply to other senior associates and are in
line with market practice in the Netherlands.
In addition, third-party tax services will be
provided to ensure compliance with the
relevant legislative requirements.
(Service) Agreements
The term of appointment for all Management
Board members is four years. If the Company
terminates the (service) agreement of any
member of the Management Board, the
severance payment is limited to one year’s
base salary. The same applies if an initial
(service) agreement for four years is not
continued in the event the Management
Board member is not reappointed.
The agreement may be terminated by the
Company with a notice period of 12 months
and by the Management Board member with
a notice period of six months.
Ahold Delhaize’s remuneration policy,
adopted at the General Meeting of
Shareholders on April 19, 2016, applies as of
July 24, 2016 - the first calendar day after the
merger of Ahold and Delhaize was finalized.
For the members appointed to the Management Board in
2016, the 2016 base salary reflects a partial year.
1 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 salary 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.
COO
US1
COO
EUR
Base salary 2014
Base salary 2015
Base salary 2016
Pension
All existing pension arrangements in the
Netherlands have been brought in line with
the applicable fiscal pension regulations.
The pension plan for Management Board
members is calculated similarly to that
of all other associates of the Company
in the Netherlands and is referred to as
a defined benefit plan, based on career
average salary. The (current) retirement
age is 67. The pensionable salary is capped
at around €100,000 (2016: 97,474).
Each Management Board member working
on a Dutch contract pays a pension premium
contribution identical to that of all other
Ahold Delhaize associates in the Netherlands.
In addition, Management Board members
receive a gross (age-dependent) pension
allowance and can choose to participate
in a Net Pension Arrangement by investing
the net (after tax) amount. The Net Pension
Arrangement is identical to that of all other
associates of the Company in the Netherlands
whose pensionable salary exceeds the cap.
Participation in this Net Pension Arrangement
is voluntarily.
The Management Board remuneration for
2016 is in accordance with the Management
Board remuneration policies applicable in
2016. Up to the date of the merger between
Ahold and Delhaize, the Ahold remuneration
policy applied. This policy was adopted at the
General Meeting of Shareholders on April 17,
2013, and amendments were adopted at the
General Meeting of Shareholders on April 15,
2015.
For 2017, no adjustments to the remuneration
policy are expected.
The base salaries of members of the (former
Ahold) Management Board were increased
by 1.75% effective March 28, 2016. No changes
to base salaries were made at the time of
the merger.
Base salary
thousands
Deputy
CEO
€658
€666
€675
€987
€1,000
€1,013
