Unilever 2001 Annual Report Download - page 47

Unilever Annual Report & Accounts and Form 20-F 2001
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REMUNERATION REPORT
Directors’ pensions
The pension entitlements of directors are shown separately for those in the NV and PLC early retirement schemes.
Age, at Normal Increase Total
31 December Retirement Contributions in accrued accrued
2001 Age (2) paid by pension pension at
director during 31 December
yrs mths yrs mths during 2001 2001 (3) (4) (5) 2001 (4) (5)
NV scheme (1) €€€
A Burgmans (6) 54 11 60 0 0 83 495 519 161
A Kemner (7) 62 3 60 0 0 19 950 531 422
A R van Heemstra (8) (9) 55 11 60 0 0 149 497 338 714
$$$
C B Strauss (8) (10) 58 11 60 0 0 129 922 730 149
PLC scheme £££
N W A FitzGerald 56 4 60 9 0 36 209 607 099
R D Brown (11) 55 1 60 0 0 144 840 320 120
A C Butler 55 6 60 0 0 25 621 330 137
P J Cescau (8) (12) (13) 53 3 60 0 0 85 983 340 751
K B Dadiseth (8) 56 0 60 0 0 160 469 352 125
R H P Markham 55 10 60 0 0 43 384 338 919
(1) The NV early retirement scheme operates on the basis of a justifiable expectation and does not provide a vested deferred entitlement.
Directors leaving before age 55 are not entitled to any benefit, while those terminating service at age 55 or older can expect to
receive an immediate pension under the expectations of the scheme. All directors participating in the NV scheme are members of the
Dutch social security system except for Mr C B Strauss.
(2) Normal Retirement Age is that established for the purposes of the respective early retirement scheme for the director, and generally
does not coincide with the termination date of his employment under the terms of his service contracts (see ‘Directors’ service
contracts’ on page 42). The method of calculating this age was changed subsequent to the appointment of Mr N W A FitzGerald as a
director.
(3) The increase in accrued pension during the year excludes any increase for inflation over the year, and is shown on a consistent basis
with the accrued pension at the end of the year. For directors retiring during the year, the accrued pension and its increase are based
on the position when the director retired. For directors appointed during the year, the increase is based on the difference between the
accrued pension at the end of the year and the accrued pension immediately prior to the appointment.
(4) For directors in the NV early retirement scheme aged 55 and over, the accrued pension is the immediate annual pension payable
under all Unilever schemes. For the NV directors under age 55, no pension is included in respect of the NV early retirement scheme
and the accrued pension is that payable in total, under the normal Unilever schemes, ignoring any future inflationary increases. The
accrued pension under the normal PLC scheme is payable from age 65, while the accrued pension under the normal NV scheme is
shown payable from age 62, which is the age at which the most valuable retirement terms are provided, and includes temporary
pensions converted to lifetime equivalent pensions. For NV directors appointed before 31 December 1998, the additional lump sum of
one year’s final pensionable pay, payable on normal retirement, is excluded from these pensionable amounts. Amounts paid are
disclosed separately in the year of retirement.
(5) For the PLC scheme, the accrued pension shown is that which would be paid annually from Normal Retirement Age, based
on service to 31 December 2001, and includes benefits from all Unilever schemes. It does not include allowance for any future
inflationary increases.
(6) 89% of the total accrued pension at 31 December 2001 and 92% of the increase in accrued pension correspond to the normal
NV scheme.
(7) Retired during the year. In addition to the benefit shown, a lump sum of 864 000 was paid on retirement.
(8) Elected after 1 January 1999. The accrued pension includes benefits (actuarially converted for consistency) under all Unilever schemes
and those earned, prior to appointment, under social security schemes.
(9) Since Mr A R van Heemstra reached age 55 during the year, the increase in his accrued pension during 2001 was calculated using the
end 2000 accrued pension, converted actuarially to be consistent with the end 2001 accrued pension.
(10) Benefits based on a US dollar denominated salary. Benefits will be increased in payment at the same time as pensions under the
normal NV pension scheme. The increase will be based on a US denominated index derived using the same principles as those applied
for normal pension increases under the normal NV pension scheme.
(11) Retired during the year. As Mr R D Brown retired at an age below 60, the increase in his accrued pension during 2001 was calculated
using the end 2000 accrued pension expressed as a normal reduced early retirement pension.
(12) Benefits payable under the PLC scheme will be converted into euros at the exchange rate prevailing at date of appointment.
(13) Remained in PLC scheme on a transitional basis throughout 2001 but pension arrangements are in the process of being transferred
to NV scheme as a result of a change in base country.