Unilever 2006 Annual Report Download - page 62

Unilever Annual Report and Accounts 2006 59
Report of the Directors (continued)
Report of the Remuneration Committee (continued)
Executive Directors’ pensions(a)
Pension values for the year ended 31 December 2006 are set out below.
Increase
Increase in Transfer in transfer Transfer
accrued value of value during Individual value of
Accrued pension Accrued accrued 2006 (less contributions accrued
pension at during pension at pension at individual made during pension at
Age at 31/12/05(b) 2006(c) 31/12/06(b) 31/12/05(d) contributions)(e) 2006(f) 31/12/06(d)
Name and base country 31/12/06 €’000 pa €’000 pa €’000 pa €’000 €’000 €’000 €’000
Patrick Cescau (UK) 58 933 67 1000 16 770 1 874 18 18 662
Kees van der Graaf (g) (NL) 56 538 64 602 6942 1 147 9 8 098
Ralph Kugler (UK) 50 396 45 441 5411 862 10 6 283
Rudy Markham (UK) 60 752 41 793 15 147 741 21 15 909
(a) Figures have been translated into euros where necessary using the following exchange rates: 31 December 2005 €1.00 = £0.6864;
31 December 2006 €1.00 = £0.6712; Average for the year ended 31 December 2006 €1.00 = £0.6818.
(b) Based on the Executive Directors’ current pension letters and calculated on a deferred basis using the Executive Directors’ service to
31 December 2005 and 31 December 2006 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.
(c) Includes the effect of inflation on the accrued pension at 31 December 2005.
(d) For the Netherlands-based Executive Directors’ 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 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.
(e) The increase in transfer value during 2006 includes the effect of salary increases and additional service together with exchange rate
movements (for pensions denominated in currencies other than Euro) and the Executive Directors being one year closer to retirement.
(f) Consistent with other Netherlands and UK-based employees, the rate of individual contributions in the Netherlands is 1% of pensionable
salary and in the UK 5% of pensionable salary (above the relevant thresholds). In line with the treatment adopted for other UK-based
employees, individual contributions paid by Executive Directors’ in the UK are now paid through a salary sacrifice arrangement. Individual
contributions shown above represent the contributions paid before the change to salary sacrifice.
(g) Consistent with the treatment adopted for other Netherlands-based employees, the increase in pension accrued during the year includes
the impact of the changes to the Unilever Netherlands pension plan.
The Listing Rules of the Financial Services Authority are different from the Directors’ Remuneration Report Regulations 2002 and
requirethe following disclosures for defined benefitpension plans which arecalculated on an alternative basis to those disclosed in
the table above:
• Increase (or decrease) in accrued pension during 2006 (excluding the effect of inflation on the accrued pension at 31 December
2005): Patrick Cescau €33 000; Kees van der Graaf €56 000; Ralph Kugler €10 000; Rudy Markham €(4 000);and
• Transfer value at 31 December 2006 of the increase (or decrease) in accrued pension during 2006 (excluding the effect of inflation
on the accrued pension at 31 December 2005 and less individual contributions): Patrick Cescau €605 000; Kees van der Graaf
€754 000; Ralph Kugler €134 000; Rudy Markham €(110 000).
The Dutch Corporate Governance Code requires the following disclosure of pension service costs charged to operating profit: Patrick
Cescau €842 000; Kees van der Graaf €258 000; Ralph Kugler €299 000; Rudy Markham €167 000.
The accrued pension of Antony Burgmans at 1 June 2006 (the date his pension payment commenced) was €1 136 000; increase in
accrued pension during the year €22 000 (€21 000 excluding inflation); transfer value of the increase in accrued pension during the
year (less individual contributions) €652 000 (€337 000 excluding inflation); individual contributions made during the year €10 000;
pension cost charged to operating profit €621 000.