Annual Report 2017

37. Related Parties

37.1 Transactions and positions with Related Parties

During 2017 GrandVision acquired goods from Safilo (a group company of HAL Holding N.V.) for an amount of €58,838 (2016: €79,900).

Other positions with Related Parties are as follows:

in thousands of EUR

Notes

2017

2016

Trade receivables:

Safilo

5,164

8,540

Other HAL subsidiaries

192

397

20

5,356

8,937

Trade payables:

Safilo

10,699

21,116

HAL Investments B.V

1,885

2,153

Other HAL subsidiaries

129

145

33

12,713

23,414

37.2 Loans to/ from Related Parties

The Group has granted loans to senior managers of the Group and its subsidiaries as part of various share-based payment plans of €1,530 (2016: €7,029) of which interest income was accrued of €121 (2016: €344). For more details refer to note 17. Upon sale of shares the managers will have to redeem their loans. The shares awarded under the equity plan are pledged as security on the loans.

The loan to key management relating to P.J. de Castro Fernandes was fully redeemed in 2017 (at 31 December 2016: €1,555), and had an interest rate of 4.00%. No advance payments, guarantees or other loans have been provided to key management.

The Group has received loans from senior managers of the Group and its subsidiaries of €2,939 (2016: none), with interest rates ranging between 3.00% and 9.53%.

37.3 Remuneration

Key management includes the Management Board, which consists of the CEO and CFO. The remuneration for key management comprises a fixed and a variable part and includes salary, post-employment benefits and share-based payment plan benefits.

in thousands of EUR

2017

2016

Th. A. Kiesselbach (CEO)

Salary and other short-term benefits

808

797

Post-employment benefits

144

142

Short-term variable remuneration

86

262

Share-based payments

1,143

1,360

2,181

2,561

P.J. de Castro Fernandes (CFO)

Salary and other short-term benefits

524

539

Post-employment benefits

105

98

Short-term variable remuneration

54

164

Share-based payments

650

853

1,333

1,654

Key management is entitled to an annual performance-related variable remuneration. The objective of the annual performance-related variable remuneration payment is to incentivize and reward strong short-term financial and personal performance and the implementation of strategic imperatives, and to facilitate rapid growth while continuing to focus on sustainable results. The Supervisory Board will define, on an annual basis, the performance ranges, the 'on target' value and the maximum at which the payout will be capped. For more details refer to the chapter 'Remuneration Report' of the Annual Report. The set targets for 2017 were mostly not achieved.

The performance conditions are set by the Supervisory Board on an annual basis at or prior to the beginning of the relevant calendar year. These performance conditions include criteria reflecting GrandVision’s financial performance and may also include quantitative or qualitative criteria related to the Company’s non-financial performance and/or to individual performance.

The amounts included as share-based payment plan benefits represent the amounts recognized in the Income Statement. For the movements in the share-based payment plan please refer to note 30.

37.4 Supervisory Board Remuneration

The remuneration paid or payable to the Supervisory Board is shown below:

in thousands of EUR

2017

2016

C.J. van der Graaf

73

73

J.A. Cole

60

60

M.F. Groot

60

60

P. Bolliger

60

60

W. Eelman

60

60

313

313

All the remuneration paid or payable to the Supervisory Board comprises short-term benefits. No loans, advance payments or guarantees have been provided to the Supervisory Board.