Unilever 2005 Annual Report Download - page 69

66 Unilever Annual Report and Accounts 200566 Unilever Annual Report and Accounts 2005
Executive Directors’ pensions(1)
Pension values for the year ended 31 December 2005 are set out below.
Increase
Increase Transfer value in transfer value Individual Transfer value
Accrued in accrued Accrued of accrued during 2005 contributions of accrued
Age at pension at pension pension at pension at (less individual made during pension at
Name and 31/12/05 31/12/04(2) during 2005(3) 31/12/05(2) 31/12/04(4) contributions) 2005 31/12/05(4)
base country € ‘000 pa € ‘000 pa € ‘000 pa € ‘000 € ‘000 € ‘000 € ‘000
Current Executive Directors
Patrick Cescau (UK) 57 873 60 933 14 459 2 239 72 16 770
Kees van der Graaf(5) (NL) 55 331 207 538 4 158 2 776 8 6 942
Ralph Kugler(6) (UK) 49 338 58 396 3 647 1 733 31 5 411
Rudy Markham (UK) 59 678 74 752 13 347 1 746 54 15 147
Position changed in 2005
Antony Burgmans(7) (NL) 58 959 155 1 114 14 151 3 738 16 17 905
Former Executive Directors (2005)
Clive Butler(8) (UK) 59 570 48 618 10 959 1 260 17 12 236
Keki Dadiseth(8) (UK) 60 750 43 793 15 156 1 058 23 16 237
André van Heemstra(8)(NL)59 566 18 584 8 609 624 8 9 241
The increase in transfer value during 2005 includes the effect of salary increases, additional service, benefit enhancements and any
changes in actuarial bases.
(1) Figures have been translated into euros where necessary using the following exchange rates: 31 December 2004 €1.00 = £0.7069;
31 December 2005 €1.00 = £0.6864; and average for the year ended 31 December 2005 €1.00 = £0.6837.
(2) Calculated on a deferred basis using the Executive Directors’ service to 31 December 2004 and 31 December 2005 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 Director’s
arrangements, which previously operated on the basis of a justifiable expectation and did not provide vested deferred entitlement, have
been converted to a vested benefit, consistent with the treatment adopted for other Netherlands senior executives with similar expectations.
(3) Includes the effect of inflation on the accrued pension at 31 December 2004.
(4) For the Netherlands-based Executive Director’s arrangement calculated on the basis used by the Unilever Netherlands pension plan
(‘Progress’), as prescribed by the Netherlands Ministry of Social Affairs and Employment. For the UK based Executive Directors’ arrangement
calculated on the market related basis used by the Unilever United Kingdom pension plan (UUKPF), in line with the GN11 guidance note
published by the Institute and Faculty of Actuaries in the United Kingdom. Changes in the bases during 2005 had the effect of significantly
increasing transfer values for the UK based Executive Directors.
(5) Reached age 55 during the year, hence values at 31 December 2005 include the NV arrangement (see footnote 2 above).
(6) Joined the Boards in May 2005. 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 10 May 2005 include pension, and the transfer value of pension, accrued prior to becoming an Executive
Director.
(7) Changed from Executive to Non-Executive Director in May 2005. Figures shown in the table above are at the date of change or the period
ending on that date, as appropriate.
(8) Stepped down from the Boards in May 2005. Figures shown in the table above are at the date they stepped down, or the period ending on
that date, as appropriate.
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 2005 (excluding the effect of inflation on the accrued pension at 31 December 2004):
Patrick Cescau €37 000; Kees van der Graaf €204 000; Ralph Kugler €38 000; Rudy Markham €35 000; Antony Burgmans
€147 000; Clive Butler €15 000; Keki Dadiseth €nil; and André van Heemstra €13 000; and
• Transfer value at 31 December 2005 of the increase or decrease in accrued pension during 2005 (excluding the effect of inflation
on the accrued pension at 31 December 2004 and less individual contributions): Patrick Cescau €585 000; Kees van der Graaf
€2 571 000; Ralph Kugler €490 000; Rudy Markham €661 000; Antony Burgmans €2 353 000; Clive Butler €264 000;
Keki Dadiseth €(29 000); and André van Heemstra €172 000.
The Dutch Corporate Governance Code requires the following disclosure of pension service costs charged to operating profit:
Patrick Cescau €693 000; Kees van der Graaf €676 000; Ralph Kugler €162 000; Rudy Markham €275 000; Antony Burgmans
€1 684 000; Clive Butler €257 000; Keki Dadiseth €386 000; and André van Heemstra €268 000.
Report of the Remuneration Committee
(continued)