Unilever 2004 Annual Report Download - page 87

84 Unilever Annual Report and Accounts 2004
(1) Figures have been translated into euros and pounds sterling using the following exchange rates:
31 December 2003 €1.00 = £0.7077; 31 December 2004 €1.00 = £0.7069; average for year ended 31 December 2004 €1.00 = £0.6781.
(2) The accrued annual pension is calculated on a deferred basis using the Executive Directors’ service to 31 December 2003 and 31 December
2004 respectively on the basis that the Executive Directors remain in service until at least age 60 and that the pension payment commences
at that time. It includes all pensions provided from Unilever pension plans. In the event that an Executive Director leaves service prior to age
60 and the payment of pension commences earlier than age 60, the pension payable would be on a reduced basis. The Netherlands based
Executive Directors’ arrangements operate on the basis of a justifiable expectation and do not provide a vested deferred entitlement and
therefore the figures are on a notional deferred basis. The Netherlands based Executive Directors leaving before age 55 are not entitled to a
pension from the NV arrangement, their entitlement would be to their pension from other Unilever pension plans.
(3) The increase in accrued pension during 2004 includes the effect of inflation on the accrued pension at 31 December 2003.
(4) The transfer values for the Netherlands based and US based Executive Directors' arrangements are calculated on the basis used by the
Unilever Netherlands pension plan (Progress), as prescribed by the Netherlands Ministry of Social Affairs and Employment. The transfer
values for the UK based Executive Directors’ arrangement are calculated on the market related basis used by the Unilever United Kingdom
pension plan (UPF), in line with the GN11 guidance note published by the Institute and Faculty of Actuaries in the United Kingdom.
Changes in the bases during 2004 had the effect of significantly increasing transfer values, especially for the UK-based Executive Directors.
Within last year’s report the Netherlands based Executive Directors’ transfer values were presented on the basis of an immediately
commencing pension. This year the transfer values for the Netherlands based Executive Directors are presented on a notional deferred basis
as described in (2) and in line with the presentation for the UK-based Executive Directors. The transfer values for the Netherlands-based
Executive Directors at 31 December 2003 have therefore been actuarially converted to be consistent with the form of the 31 December
2004 transfer values.
(5) UK based from 1 October 2004. Figures shown in the table above are therefore on the Netherlands basis for 31 December 2003 and the
UK basis for 31 December 2004.
(6) Joined the Boards on 12 May 2004. Figures shown in the table above relate to the date of joining the Boards, or the period starting on that
date, as appropriate. Figures at 12 May 2004 include pension, and the transfer value of pension, accrued prior to becoming an Executive
Director. Has not reached the age of 55 and therefore the figures shown are those of the Unilever Netherlands pension plan (Progress).
(7) Retired from the Boards on 30 September 2004. Figures shown in the table above relate to the date of retirement from the Boards, or the
period ending on that date, as appropriate. The accrued pension at 30 September 2004 was enhanced to reflect the crediting of potential
pensionable service to age 60. On death before age 60, life cover benefits will continue to be payable as if still in active pensionable
employment. The payment of pension is due to commence at age 60.
(8) Retired from the Boards on 12 May 2004 but continued to be employed by Unilever United States Inc. until 31 December 2004. Figures
shown in the table above relate to the date of retirement from the Boards, or the period ending on that date, as appropriate. The accrued
pension at 12 May 2004 was enhanced to include the value of US savings plan employer contributions. The payment of pension
commences with effect from 1 January 2005.
The Listing Rules of the Financial Services Authority are different from the Directors’ Remuneration Report Regulations 2002 and require the
following disclosures for defined benefit pension plans which are calculated on an alternative basis to those disclosed in the table above:
• Increase in accrued pension during 2004 (excluding the effect of inflation on the accrued pension at 31 December 2003):
A Burgmans €27 000 [£18 000]; P J Cescau €139 000 [£94 000]; A C Butler €22 000 [£15 000]; K B Dadiseth €47 000 [£32 000];
C J van der Graaf €134 000 [£91 000]; A R van Heemstra €29 000 [£20 000]; R H P Markham €38 000 [£26 000]; N W A FitzGerald
€71 000 [£48 000]; C B Strauss €24 000 [£16 000].
• Transfer value at 31 December 2004 of the increase in accrued pension during 2004 (excluding the effect of inflation on the accrued
pension at 31 December 2003 and less individual contributions):
A Burgmans €389 000 [£275 000]; P J Cescau €2 180 000 [£1 541 000]; A C Butler €359 000 [£254 000]; K B Dadiseth €891 000
[£630 000]; C J van der Graaf €1 707 000 [£1 207 000]; A R van Heemstra €440 000 [£311 000]; R H P Markham €679 000 [£480 000];
N W A FitzGerald €1 273 000 [£900 000]; C B Strauss €402 000 [£284 000].
The Dutch Corporate Governance Code requires the following disclosure of pension service costs charged to operating profit:
A Burgmans €353 000 [£239 000]; P J Cescau €434 000 [£294 000]; A C Butler €237 000 [£161 000]; K B Dadiseth €670 000 [£454 000];
C J van der Graaf €138 000 [£94 000]; A R van Heemstra €251 000 [£170 000]; R H P Markham €255 000 [£173 000]; N W A FitzGerald
€376 000 [£255 000]; C B Strauss €517 000 [£365 000].
Remuneration report
Details – Executive Directors (continued)