Unilever 1999 Annual Report Download - page 33

Unilever Group Directors’ remuneration and interests
Report to the shareholders (continued)
Policy: directors’ pensions
The aim of the Remuneration Committee is that pension and other related benefits should be in line with good practice by major
companies in the Netherlands and the United Kingdom, bearing in mind the need to establish reasonable comparability between
the conditions for the various nationalities of directors.
All directors are members of the normal Unilever pension schemes. Because directors are paid by both NV and PLC, they participate in
both the NV and PLC normal pension schemes. The NV scheme has been on a contribution holiday since 1990. The PLC scheme has been
on a contribution holiday since January 1997.
All directors are also members of their respective early retirement scheme, which provides an overall pension coverage inclusive
of benefits under other Unilever schemes. The current arrangements are that directors belong to either the NV or PLC scheme, depending
on their contractual arrangements. NV finances the NV scheme and PLC finances the PLC scheme. Also, under the current arrangements,
in order to equalise benefits amongst the directors, those directors who are members of the NV scheme and retire at normal retirement
date receive an additional lump sum amount equal to one year’s final pensionable pay. The benefits received by directors under these
early retirement schemes are, in most other respects, the same as those generally provided for senior management.
Under both the early retirement schemes, final pensionable pay takes into account the bonuses paid in the last three years prior
to termination of service, subject to a maximum of 20% of pensionable pay. The Remuneration Committee believes that the policy of
allocating a significant part of directors’ emoluments to performance related payments instead of salary, whilst retaining control over the
overall package of emoluments, should not affect the directors’ reasonable expectations of a pension at a level that is in line with that
provided by major companies in the Netherlands and the United Kingdom. The Committee does not agree with the recommendations of
the Combined Code in this respect but continues to keep the development of best practice in respect of the pensionability of bonuses
under review.
Directors’ pensions
The pension entitlements of directors are shown separately for those in the NV and PLC early retirement schemes.
NV scheme
(1)
Age, at 31
December
1999
Normal
Retirement
Age (2)
Contributions
paid by
director
during 1999
Increase
in accrued
pension
during
1999 (3)(4)
Total
accrued
pension at
31 December
1999 (4)
yrs mths yrs mths Fl. Fl. Fl.
M Tabaksblat
(5)
62 3 60 0 0 1 128 1 595 748
A Burgmans
(6)
52 11 60 0 0 117 369 765 256
H Eggerstedt
(7)
61 10 60 0 0 43 328 1 244 856
A Kemner 60 3 60 0 0 156 562 1 033 251
J Peelen 59 10 60 0 0 163 713 1 026 669
PLC scheme
Age, at 31
December
1999
Normal
Retirement
Age (2)
Contributions
paid by
director
during 1999
Increase
in accrued
pension
during
1999 (3)(8)
Total
accrued
pension at
31 December
1999 (8)
yrs mths yrs mths £ £ £
NWA FitzGerald 54 4 60 9 0 56 979 510 474
RD Brown 53 1 60 0 0 15 787 228 292
AC Butler 53 6 60 0 0 21 948 260 272
PJ Cescau
(9)
51 3 60 0 0 149 751 192 240
RHP Markham 53 10 60 0 0 44 414 251 351
RM Phillips
(10)
61 6 60 0 0 42 392 556 723
33 Unilever Annual Accounts 1999