Unilever 2014 Annual Report Download - page 31

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(B) FIXED ALLOWANE AND OTHER BENEFITS (AUDITED)
For 2014 ths comprsesPaul Polman
EO (UK)
(£)(1)
Jean-Marc Hut
FO (UK)
(£)(1)
2014 2014
Fxed allowance 250,000 260,000
Medcal nsurance cover and actual tax return preparaton costs 54,637 35,765
Provson of death-n-servce benefts and admnstraton 10,901 8,174
Unlever 2005 Share Save Plan(2) 11,868 n/a
Payment to protect aganst dfference between employee socal securty oblgatons n country of resdence
versus UK 307,899 n/a
Total 635,305(3) 303,939
(1) The numbers n ths table are quoted n sterlng and have been translated nto euros for the sngle fgure of remuneraton table above usng the average
exchange rate over 2014 of 1 = £08071
(2)
On 25 November 2014 Paul Polman exercsed hs 1,042 optons under the Unlever 2005 Share Save Plan The opton prce at grant was £1492 and the closng
share prce on the exercse date was £2631 so hs notonal gan on exercse was £11,868
(3)
In 2013, the Dutch government appled an addtonal crss tax charge of 16% over 2013 taxable ncome of employees above 150,000 Ths tax charge for
Unlever NV for Paul Polman over 2013 was 148,969 Ths tax s an expense to the employer and therefore not ncluded n the table above and s no longer
applcable n 2014
() ANNUAL BONUS (AUDITED)
Annual bonus 2014 actual outcomes
• EO – £1,333,200 (whch s 66% of maxmum, 132% of base salary)
• FO – £628,320 (whch s 59% of maxmum, 88% of base salary)
Ths ncludes cash and shares nvested under the MIP See below for detals
Performance aganst targets
Target
PERFORMANCE
Performance metrics Threshold
Result
vesting
(% of target)
Maximum
Core operating margin improvement
compared to prior year (⅓)
Underlying volume growth (⅓)
Underlying sales growth (⅓) 2.9%
1.0%
30%8%
5%
2%
0% 40%
133%
Overall performance ratio (based on
actual performance bonus formula)200%0% 68%
Actual performance ratio
(after Committee discretion)200%0% 80%
0percentage
points 0.6percentage
points
0.4percentage
points
2014 has been a year of reslent performance n the face of stff competton and a deteroratng economc envronment n many of the
markets n whch Unlever operates
At the begnnng of the year, the ommttee set stretchng performance targets, aganst whch management has made sold progress
despte declnng growth rates durng the year across many of the markets n whch Unlever sells ts products Underlyng sales growth
was 29% and underlyng volume growth was 10% Although these results are towards the lower end of the performance range, Unlever
has contnued to grow ahead of ts markets Improvement n core operatng margn compared wth 2013 was 04 percentage ponts
The ommttee consdered ths to be an outstandng performance, especally gven unfavourable movements n exchange rates over the
course of 2014 To acheve ths result, underlyng core operatng margn growth at constant exchange rates has been 08 percentage ponts
reflectng strong dscplne n controllng costs
In vew of the hgh qualty of results acheved over the course of the year, the ommttee exercsed ts udgement to rase the overall
roup bonus score from 68% to 80% of target (40% of maxmum) The ommttee consdered ths to be a farer representaton of the
performance delvered by the executve team durng 2014 In the past fve years, ncludng 2014, the ommttee has exercsed ts
dscreton to adust the formulac outcome of the annual bonus calculaton downwards three tmes and upwards twce
In determnng bonus outcomes for Paul Polman, the ommttee also consdered hs strong personal performance and leadershp n
drvng Unlever to a more agle and reslent busness, as well as hs personal leadershp n drvng towards a more responsble long-term
sustanable busness model, takng the needs of multple stakeholders nto account, drvng dversty and makng Unlever the choce for
talent n the maorty of ts markets As a consequence of that revew, Paul Polman was awarded a personal performance multpler of
138% Ths resulted n Paul Polman recevng a bonus of 132% of hs base salary Ths s calculated as follows
68 Unilever Annual Report and Accounts 2014Governance
DIRETORS’ REMUNERATION
REPORT ONTINUED