Unilever 2014 Annual Report Download - page 27

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PAYIN FOR
PERFORMANE
The focus of our package s on varable pay based on annual and long-term performance Performance-
related elements are structured so that target levels of reward are compettve, but Executve Drectors
can only earn hgher rewards f they exceed the ongong standards of performance that Unlever requres
ALININ
PERFORMANE
MEASURES
WITH STRATEY
The performance measures for our annual and long-term plans have been selected to support our
busness strategy and the ongong enhancement of shareholder value through a focus on ncreasng
sales, mprovng margn, cash generaton and returns for shareholders
DELIVERIN
SUSTAINABLE
PERFORMANE
Acknowledgng that success s not only measured by delverng fnancal returns, we also consder
the qualty of performance n terms of busness results and leadershp, ncludng corporate socal
responsblty and progress aganst the USLP, when determnng rewards
To ensure that remuneraton arrangements fully support our sustanablty agenda, the personal
performance goals under the annual bonus nclude USLP targets
ALINMENT
WITH
SHAREHOLDER
INTERESTS
The maorty of the package for our Executve Drectors s delvered n Unlever shares to ensure that
the nterests of executves are algned wth shareholders’ nterests Ths s further supported by
sgnfcant shareholdng requrements, ensurng that a substantal porton of each Executve Drector’s
personal wealth s lnked to Unlever’s share prce performance
Non-Executve Drectors are also encouraged to buld up ther personal holdng of Unlever shares
to ensure algnment wth shareholders’ nterests
PAYIN
OMPETITIVELY
The overall remuneraton package offered to Executve Drectors should be suffcently compettve to
attract and retan hghly experenced and talented ndvduals, wthout payng more than s necessary
PREVENTIN
INAPPROPRIATE
RISKTAKIN
The ommttee beleves that Unlever’s rsk management process provdes the necessary control to
prevent napproprate rsk-takng When the ommttee revews the structure and levels of performance-
related pay for Executve Drectors and other members of the Unlever Leadershp Executve (ULE), t
consders whether these mght encourage behavours that are ncompatble wth the long-term nterests
of Unlever and ts shareholders or that may rase any envronmental, socal or governance rsks Where
necessary, the ommttee would take approprate steps to address ths
THE PAKAE HAS BEEN DESINED BASED ON THE FOLLOWIN KEY PRINIPLES
64 Unilever Annual Report and Accounts 2014Governance
DIRETORS’ REMUNERATION
REPORT ONTINUED