34. Related Parties

34.1 Loans from Related Parties

At 31 December 2014 the Group no longer has a loan from HAL outstanding (2013: €325,000).

34.2 Other Transactions with Related Parties

On 30 September 2014 the Group acquired HAL Optical Turkey BV and its subsidiary as well as HAL Investment Asia BV and its subsidiaries from the parent company HAL Holding. The consideration paid is €88,164 and the transaction is based on arm’s-length conditions.

During 2014 GrandVision acquired goods from Safilo (a subsidiary of HAL) to the amount of €63,094 (2013: €56,268). Trade receivables (note 20) include a receivable for marketing activities of €2,142 from Safilo (2013: €4,661) and a receivable from Intersafe Holding (a subsidiary of HAL) of €24 (2013: €0). Trade payables (note 29) include a liability to Safilo of €15,172 (2013: €8,199) and a payable to HAL Investments and HAL subsidiaries of €5,778 (2013: €2,085).

34.3 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

2014

2013

Balance at 1 January

15,302

15,142

Additions

2,900

3,012

Redemptions

- 2,176

- 3,566

Accrued interest

743

714

Balance at 31 December

16,769

15,302

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, %

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%

2013

Th. A. Kiesselbach

869

June 2005 – unlimited

5.00%

Th. A. Kiesselbach

96

June 2008 – 6 years

4.85%

Th. A. Kiesselbach

82

June 2010 – 6 years

4.00%

Th. A. Kiesselbach

152

June 2012 – unlimited

4.00%

P.J. de Castro Fernandes

1,436

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.

34.4 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

2014

2013

Th. A. Kiesselbach (CEO)

Salary and other short-term benefits

686

655

Post-employment benefits

121

115

Other long-term benefits

-

59

Short-term variable remuneration

313

221

Long-term incentive plan benefits

1,151

2,178

2,271

3,228

P.J. de Castro Fernandes (CFO)

Salary and other short-term benefits

441

388

Post-employment benefits

70

65

Other long-term benefits

-

33

Short-term variable remuneration

191

105

Long-term incentive plan benefits

409

260

1,111

851

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.

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.

An amount of €117 for the crisis levy for the amounts remunerated in 2013 has been paid in 2014. This charge is borne by the Company.

For the movements in the long-term incentive plan please refer to note 28.

34.5 Supervisory Board Remuneration

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

in thousands of EUR

2014

2013

C.J. van der Graaf

58

58

J.A. Cole

47

47

M.F. Groot

-

-

P. Bolliger

48

48

W. Eelman

48

48

201

201

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