Unilever 2005 Annual Report Download - page 61

58 Unilever Annual Report and Accounts 2005
Report of the Remuneration Committee
(continued)
Other items
Unilever’s share performance relative to broad-based
equity indices
The UK Companies Act 1985 (schedule 7A) requires us to show
Unilever’s relative share performance, based on Total Shareholder
Return, against a holding of shares in a broad-based equity index
for the last five years. The Remuneration Committee has decided
to show Unilever’s performance against two indices, namely the
FTSE 100 Index, London, and the Euronext AEX Index, Amsterdam
as these are the most generally used indices in the UK and the
Netherlands, where we have our principal listings.
Unilever
AEX
Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005
130
110
120
90
100
80
70
60
50
Five-Year Historical TSR Performance
Growth in the value of a hypothetical investment over five years
AEX comparison based on 30 day average values
Unilever
FTSE 100
Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005
130
100
110
120
90
80
70
60
50
Five-Year Historical TSR Performance
Growth in the value of a hypothetical £100 holding over five years
FTSE 100 comparison based on 30 trading day average values
Remuneration committee
Tasks and responsibilities
The Committee is responsible for making proposals to the Boards
on the reward policy for Executive Directors. It is also responsible
for setting individual reward packages for Executive Directors and
for monitoring and approving all share-based incentive
arrangements. The Committee meets at least three times a year
and, during 2005, it met on 6 occasions.
Structure and role
The Chairman of the Committee is Bertrand Collomb. The other
two Non-Executive Directors of the Committee are David Simon
and Jeroen van der Veer.
The Non-Executive Directors are chosen for their broad experience
and international outlook.
Advice and assistance
The Committee does not formally retain remuneration
consultants. It seeks professional advice from external advisers as
and when required. During 2005, the Committee sought advice
from Towers Perrin (an independent firm of human resources
specialists) on market data, reward trends and performance-
related pay. Towers Perrin also provides general consultancy advice
to Unilever group companies on employee rewards, pension,
communications and other human resource matters.
The Committee is supplied with information by Jan van der Bijl,
who is also one of the Joint Secretaries of Unilever.
The Group Chief Executive can be invited to attend Committee
meetings to provide his own insights to the Committee on
business objectives and the individual performance of his direct
reports. Naturally, he does not attend when his own remuneration
is being discussed.
The Non-Executive Chairman can, in his role as Chairman of the
Board, also attend the meetings.