37. Related Parties

37.1 Other Transactions with Related Parties

During 2015 GrandVision acquired goods from Safilo (an associate of HAL) for an amount of €77,183 (2014: €63,094). Trade receivables (note 20) include a receivable for marketing activities of €9,020 from Safilo (2014: €2,142), receivable from Intersafe Holding (a subsidiary of HAL) of €81 (2014: €24) and receivable from AudioNova International BV of €44 (2014: €0) . Trade payables (note 33) include a liability to Safilo of €15,477 (2014: €15,172) and a payable to HAL Investments and HAL subsidiaries of €2,460 (2014: €5,778).

37.2 Loans to Related Parties

The Group has granted loans to members of the management as part of the long-term incentive plan. For more details refer to note 17.

Management of the Group and its subsidiaries:

in thousands of EUR

2015

2014

Balance at 1 January

16,769

15,302

Additions

-

2,900

Redemptions

- 7,390

- 2,176

Accrued interest

537

743

Balance at 31 December

9,916

16,769

The loans to key management have the following terms and conditions: 

Name of key management

Amount of loan (in thousands of EUR)

Term

Interest rate, %

2015

P.J. de Castro Fernandes

1,524

June 2012 - unlimited

4.00%

2014

Th. A. Kiesselbach

913

June 2005 – unlimited

5.00%

Th. A. Kiesselbach

85

June 2010 – 6 years

4.00%

Th. A. Kiesselbach

159

June 2012 - unlimited

4.00%

P.J. de Castro Fernandes

1,494

June 2012 - unlimited

4.00%

All loans have been granted to senior managers of the Company as part of various long-term incentive plans. Upon sale of shares the managers will have to redeem their loans. The shares awarded under LTIP real share plan are pledged as security on the loans.

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 long-term incentive plan benefits.

in thousands of EUR

2015

2014

Th. A. Kiesselbach (CEO)

Salary and other short-term benefits

785

686

Post-employment benefits

140

121

Short-term variable remuneration

420

313

Long-term incentive plan benefits

1,100

1,151

2,445

2,271

P.J. de Castro Fernandes (CFO)

Salary and other short-term benefits

530

441

Post-employment benefits

94

70

Short-term variable remuneration

463

191

Long-term incentive plan benefits

1,159

409

2,246

1,111

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 2015 were largely 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 long-term incentive plan benefits represent the amounts recognized in the Income Statement. For the movements in the long-term incentive 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

2015

2014

C.J. van der Graaf

73

58

J.A. Cole

60

47

M.F. Groot

60

-

P. Bolliger

60

48

W. Eelman

60

48

313

201

All the remuneration paid or payable to the Supervisory Board comprises short-term benefits.