Unilever 2014 Annual Report Download - page 28

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ANNUAL REMUNERATION REPORT
The followng sets out how Unlever’s Remuneraton Polcy, whch s avalable on our webste, wll be mplemented n 2015 and how t
was mplemented n 2014
wwwunlevercom/ara2014/downloads
IMPLEMENTATION OF THE REMUNERATION POLIY IN 2015 FOR EXEUTIVE DIRETORS
ELEMENTS OF REMUNERATION
FIXED ELEMENTS
OF REMUNERATION
AT A LANE DESRIPTION
BASE SALARY Salary effectve from 1 January 2015
• EO £1,010,000 (unchanged from
2014)
• FO £714,000 (unchanged from 2014)
In ts 2011 Report, the ommttee sgnalled ts concern that the EO’s
salary was postoned at the lower end of market practce compared to
smlar szed UK and European companes The ommttee expressed
ts ntenton to make further ncreases, as approprate, to address ths
over the next few years Havng held ther salares steady for longer
than ntended and n vew of the sustaned track record of performance
delvery, the ommttee recommended, and the Boards approved,
salary ncreases for the EO and FO wth effect from January 2015
In makng these recommendatons the ommttee consdered the
strong performance of Unlever and algnment, both to ncreases n
pay for the broader employee populaton and externally The EO and
FO have turned down the salary ncreases recommended by the
ommttee for 2015
FIXED ALLOWANE Fxed allowance for 2015
• EO – £250,000
• FO – £220,000
The FO’s allowance has been reduced
from £260,000 n 2014 to reflect the fnal
stage of the phasng-out of hs annual
housng allowance
A fxed allowance not lnked to base salary s provded as a smple,
compettve alternatve to the provson of temsed benefts and pensons
OTHER BENEFIT
ENTITLEMENTS
• Amounts for other benefts are not
known untl the year end
In lne wth Unlever’s Remuneraton Polcy, Executve Drectors wll be
provded wth death, dsablty and medcal nsurance cover and actual
tax return preparaton costs n 2015
wwwunlevercom/ara2014/downloads
In lne wth the commtments made to the current EO on recrutment
and ncluded n the Remuneraton Polcy, Unlever also pays the EO’s
socal securty oblgatons n hs country of resdence to protect hm
aganst the dfference between employee socal securty oblgatons
n hs country of resdence versus the UK
ondtonal supplemental penson
The EO also receves a condtonal supplemental penson accrual to
compensate hm for the arrangements forfeted on leavng hs prevous
employer The EO wll receve a contrbuton to hs supplemental
penson of 12% of the lower of hs actual base salary over the year and
hs 2011 base salary (£920,000) plus 3% per annum The cap for 2015
has been kept at £976,028 wth a maxmum contrbuton of £117,123
Ths supplemental penson accrual s condtonal on the EO remanng
n employment wth Unlever to age 60 and subsequently retrng from
actve servce or hs death or total dsablty pror to retrement
PERFORMANE ELEMENTS OF REMUNERATION
The actual targets for the annual bonus and the three busness-focused performance measures for the MIP and SIP awards to be
made n 2015 have not been dsclosed up front The Boards deem ths to be commercally senstve nformaton as targets could reveal
nformaton about Unlever’s busness plan and budgetng process to compettors, whch could be damagng to Unlever’s busness
nterests and therefore to shareholders Where approprate, targets wll be dsclosed n the Drectors’ Remuneraton Report followng
the end of the respectve performance perod
Performance measures are selected to algn wth Unlever’s clearly stated growth ambton and our long-term busness strategy
Unlever’s prmary busness obectve s to generate a sustanable mprovement n busness performance through ncreasng
underlyng sales whle steadly mprovng core operatng margns and cash flow
The measures chosen for the annual and long-term ncentves support the delvery of ths obectve Performance measures focus
management on the delvery of a combnaton of top-lne revenue growth and bottom-lne proft growth that Unlever beleves wll buld
shareholder value over the longer term The use of a performance measure based on total shareholder return measures Unlever’s
success relatve to peers
65Unilever Annual Report and Accounts 2014 Governance