Unilever 2007 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2007 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.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Unilever Annual Report and Accounts 2007 53
Report of the Directors continued
Report of the Remuneration Committee continued
Remuneration information for 2007
The following section contains detailed information and commentary on the Executive Directors’ annual remuneration, long-term
incentives, pension benefits and share interests in respect of 2007.
Aggregate remuneration for Executive Directors
The following table gives details of the aggregate remuneration (including value of the vesting of matching shares and exercise of
options) as a group.
2007 2006
€ ’000 € ’000
Annual emoluments
Base salary 3 491 4 061
Allowances and other payments 221 913
Benefits 82 111
Performance-related payments (annual incentive) 4 865 2 409
Sub-total of annual emoluments 8 659 7494
Other income arising from vesting/exercise of long-term incentives(a)
Gains on exercise of share options 50 427
Vesting of matching shares 230 566
Vesting of awards under TSR Long-Term Incentive Plan ––
Total of annual emoluments and other income arising from long-term incentives 8 939 8487
(a) Includes the gains realised in 2007 following the exercise of share options granted in earlier years and the value of matching shares vested
in 2007.
Comments on base salary
In 2007, base salary levels were benchmarked against those paid in other major global companies based in Europe, excluding
companies in the financial sector. The Committee decided not to increase base salaries for 2007 and to place greater emphasis on
performance-based pay.
Comments on annual incentive
The annual incentive awards for 2007 were subject to achievement of underlying sales growth and trading contribution targets in
combination with individual key strategic business targets. The Committee measured the results against the targets set and determined
the annual incentive amounts for 2007.
Remuneration for individual Executive Directors
The following table gives details of the remuneration received in 2007 (including the value of vested share match and options
exercised) by each Executive Director individually.
Other income arising from
long-term incentives and
Annual Emoluments 2007 exercise of options in 2007
Allowances Grand Grand
Base and other Value of Total Total Option Share total total
salary payments(a) benefits(b) Bonus(c) 2007 2006 gains match TSR/LTIP 2007 2006
Name and Base Country € ’000 € ’000 € ’000 € ’000 € ’000 € ’000 € ’000 € ’000 € ’000 € ’000 € ’000
Patrick Cescau (UK)(d) 1 426 129 47 2 346 3 948 2 727 50 63 – 4 061 2 940
Kees van der Graaf (NL) 798 27 9 988 1 822 1 202 – 60 – 1 882 1 287
Ralph Kugler (UK) 861 56 11 1 033 1 961 1 313 – 53 – 2 014 1 414
Rudy Markham (UK)(e) 406 9 15 498 928 1 517 – 54 – 982 2 111
(a) Includes: allowance in lieu of company car; blind trust fees compensation; compensation for loss of net income because part of the salary
was paid in the Netherlands; entertaining allowance and employers’ cost for the all-employee savings plan in the Netherlands. All
allowances are taxable in the country of residence apart from the entertaining allowance which is currently tax free in the Netherlands.
(b) Includes: benefits for company car; housing (for business use) instead of hotel; medical insurance and private use of chauffeur driven cars.
Included are benefits that are taxable in the country of residence. In addition, Unilever provides support to Executive Directors in relation to
spouse’s travel expenses when travelling together on company business. This amount is capped at 5% of base salary and for 2007 totalled
€168 559 (including related taxes payable).
(c) Bonus of the year 2007. Includes: the value of both the cash element and the element paid in shares of NV and PLC. In addition to the
element of the bonus paid in shares each Executive Director is awarded, on a conditional basis, an equivalent number of matching shares.
(d) Group Chief Executive.
(e) Rudy Markham stepped down as a Director at the May 2007 AGMs. He retired from Unilever at 31 October 2007. In the table above are
the emoluments for the period January – May 2007. His emoluments for the period June – October were in total: €1 140 000.
Figures have been translated into euros using the following exchange rate: €1 = £0.6822 (2006: €1 = £0.6818).