Unilever 2014 Annual Report Download - page 27
Download and view the complete annual report
Please find page 27 of the 2014 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.PAYIN FOR
PERFORMANE
The focus of our package s on varable pay based on annual and long-term performance Performance-
related elements are structured so that target levels of reward are compettve, but Executve Drectors
can only earn hgher rewards f they exceed the ongong standards of performance that Unlever requres
ALININ
PERFORMANE
MEASURES
WITH STRATEY
The performance measures for our annual and long-term plans have been selected to support our
busness strategy and the ongong enhancement of shareholder value through a focus on ncreasng
sales, mprovng margn, cash generaton and returns for shareholders
DELIVERIN
SUSTAINABLE
PERFORMANE
Acknowledgng that success s not only measured by delverng fnancal returns, we also consder
the qualty of performance n terms of busness results and leadershp, ncludng corporate socal
responsblty and progress aganst the USLP, when determnng rewards
To ensure that remuneraton arrangements fully support our sustanablty agenda, the personal
performance goals under the annual bonus nclude USLP targets
ALINMENT
WITH
SHAREHOLDER
INTERESTS
The maorty of the package for our Executve Drectors s delvered n Unlever shares to ensure that
the nterests of executves are algned wth shareholders’ nterests Ths s further supported by
sgnfcant shareholdng requrements, ensurng that a substantal porton of each Executve Drector’s
personal wealth s lnked to Unlever’s share prce performance
Non-Executve Drectors are also encouraged to buld up ther personal holdng of Unlever shares
to ensure algnment wth shareholders’ nterests
PAYIN
OMPETITIVELY
The overall remuneraton package offered to Executve Drectors should be suffcently compettve to
attract and retan hghly experenced and talented ndvduals, wthout payng more than s necessary
PREVENTIN
INAPPROPRIATE
RISKTAKIN
The ommttee beleves that Unlever’s rsk management process provdes the necessary control to
prevent napproprate rsk-takng When the ommttee revews the structure and levels of performance-
related pay for Executve Drectors and other members of the Unlever Leadershp Executve (ULE), t
consders whether these mght encourage behavours that are ncompatble wth the long-term nterests
of Unlever and ts shareholders or that may rase any envronmental, socal or governance rsks Where
necessary, the ommttee would take approprate steps to address ths
THE PAKAE HAS BEEN DESINED BASED ON THE FOLLOWIN KEY PRINIPLES
64 Unilever Annual Report and Accounts 2014Governance
DIRETORS’ REMUNERATION
REPORT ONTINUED