Notes 31-35

33. Related parties

Identity of related parties

Heineken has a related party relationship with its associates and joint ventures (refer note 16), Heineken Holding N.V., Heineken pension funds (refer note 26) and with its key management personnel (Executive Board and the Supervisory Board).

Key management remuneration

In millions of EUR 2008 2007
Executive Board 3.3 4.1
Supervisory Board 0.4 0.4
  3.7 4.5

Executive Board

The remuneration of the members of the Executive Board comprises a fixed component and a variable component. The variable component is made up of a Short-Term Incentive Plan and a Long-Term Incentive Plan. The Short-Term Incentive Plan is based on an organic profit growth target and specific year targets as set by the Supervisory Board. For the Long-Term Incentive Plan we refer to note 27. The separate Remuneration report is stated here.

As at 31 December 2008, J.F.M.L. van Boxmeer held 9,244 Company’s shares and D.R. Hooft Graafland 6,544 (2007: both 0 shares). D.R. Hooft Graafland held 3,052 shares of Heineken Holding N.V. as at 31 December 2008 (2007: 3,052 shares).

Executive Board

  Fixed
Salary		 Short-Term
Incentive
Plan		 Long-Term
Incentive
Plan*		 Other
deferred
benefits		 Pension plan Total
In thousands of EUR 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
J.F.M.L. van Boxmeer 750 750 611 1,125 249 207 – – 348 395 1,958 2,477
D.R. Hooft Graafland 550 550 336 619 149 143 – – 305 311 1,340 1,623
Total 1,300 1,300 947 1,744 398 350 – – 653 706 3,298 4,100
*
The Remuneration reported as part of Long-Term Incentive Plan is based on IFRS accounting policies and does not reflect the value of vested performance shares. For the LTIP period 2006 – 2008 no performance shares will vest.

Supervisory Board

The individual members of the Supervisory Board received the following remuneration:

In thousands of EUR 2008 2007
C.J.A. van Lede 66 66
J.M. de Jong 52 52
M. Das 52 52
M.R. de Carvalho 50 50
A.H.J. Risseeuw1 – 13
J.M. Hessels 50 50
I.C. MacLaurin 50 50
A.M. Fentener van Vlissingen 50 50
M. Minnick 32 –
Total 402 383

Only M.R. de Carvalho held 8 shares of Heineken N.V. as at 31 December 2008 (2007: 8 shares). As at 31 December 2008 and 2007, the Supervisory Board members did not hold any of the Company’s bonds or option rights. C.J.A. van Lede held 2,656 and M.R. de Carvalho held 8 shares of Heineken Holding N.V. as at 31 December 2008 (2007: 2,664 shares).

1
Stepped down from the Supervisory Board on 19 April 2007.

Other related party transactions

  Transaction value Balance outstanding
as at 31 December
In millions of EUR 2008 2007 2008 2007
Sale of products and services
Investments in associates and joint ventures 50 61 6 4
  50 61 6 4
 
Raw materials, consumables and services
Goods for resale – joint ventures 26 4 7 1
Other expenses – joint ventures 1 1 6 1
  27 5 13 2

Heineken Holding N.V.

In 2008 an amount of €551,000 (2007: €572,000) was paid to Heineken Holding N.V. for management services for the Heineken Group.

This payment is based on an agreement of 1977 as amended in 2001, providing that Heineken N.V. reimburses Heineken Holding N.V. for its administration costs. Best practice provision III.6.4 of the Dutch Corporate Governance Code of 9 December 2003 has been observed in this regard.