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Unilever Annual Report and Accounts 2010 65
Report of the Directors Governance
up to 60%. Unlike the Share Matching Plan, which had no performance targets, additional matching shares under the MCIP are
earned only to the extent that stretching performance targets are met.
Following our review of 2010 performance the Committee has decided to replace trade working capital improvement with underlying
sales growth as one of the three main performance indicators for the annual bonus in 2011. This more closely aligns these indicators
with our long-term strategic goals. Nonetheless, we will continue to monitor a wider range of performance indicators to ensure that
annual bonus outcomes for Unilever’s Executive Directors and senior managers continue to reflect fairly the performance of the
business and their individual contribution.
Executive Directors’ remuneration in 2010
Remuneration for
individual Executive Directors
(audited)
Annual Emoluments 2010
Name and base country
Base
salary
€ ‘000
Allowances
and other
payments*
€ ‘000
Value of
benefits
€ ‘000
Bonus Total
€ ‘000 € ‘000
Jean-Marc Huët (UK)(a) 528 934(b) 5(c) 634 2,101
Paul Polman (UK)(d) 1,072 88(e) 2(f) 1,715(g) 2,877
Total 2010 1,600 1,022 7 2,349 4,978
Total 2009 (including former Directors) 1,849 419 6 2,605 4,879
*
(a)
(b)
(c)
(d)
(e)
(f)
(g)
This does not include the cash bonus of £680,000 paid to Jean-Marc Huët for forfeiture of incentives from his former employer which was paid
before he was appointed as Executive Director, as disclosed in last year’s report.
Chief Financial Officer, appointed as Executive Director at May 2010 AGMs. Base salary set in sterling was £680,000 per annum.
Includes allowance in lieu of company car, entertaining allowance and, as Mr Huët had to re-locate to the UK on appointment in 2010, he was
compensated for the costs associated with purchasing a home in the UK. €795,844 of the payment reported above represents once-only,
non-recurring payments.
Includes benefits for private use of chauffeur-driven car and medical insurance.
Chief Executive Officer. Base salary set in sterling was £920,000 per annum.
Includes allowance in lieu of company car, entertaining allowance and payment for social security obligations in country of residence in 2010.
Includes benefits for private use of chauffeur-driven car.
Bonus for the year 2010. Includes the value of both the cash element and the element paid in shares of NV and PLC under the Share Matching
Plan. It does not include matching shares awarded on a conditional basis in addition to the element of the bonus paid in shares which is
disclosed in the Share Matching Plan table below.
In addition, Unilever provides support to Executive Directors in relation to spouses’ travel expenses when travelling together on
company business. This amount is capped at 5% of base salary and the maximum limit for 2010 was €80,031.
Amounts have been translated into euros using the average exchange rate over the year: €1 = £0.858 (2009: €1 = £0.8905)
and€1=US $1.326 (2009: €1 = US $1.388).
Pensions (audited)
Both Jean-Marc Huët and Paul Polman are members of a defined contribution pension arrangement. The total pension cost for
Jean-Marc Huët including death in service benefits and administration costs was €112,000. This included a company pension
contribution of €77,000, a further company contribution of €15,000 made in return for his individual salary sacrifice and €20,000
fordeath in service and administration costs. The total pension cost for Paul Polman including death in service benefits and
administration costs was €352,000. This included a company pension contribution of €280,000 (of which €124,000 accrued to
compensate for the forfeiture of pension from his previous employer, which will vest at age 60 or later at actual retirement date),
afurther company contribution of €31,000 which was made in return for his individual salary sacrifice and €41,000 for death in
service benefits and administration costs.
Share
Matching Plan (audited)
Balance of Balance of
conditional conditional
shares shares at
at 1 January
2010
Conditional shares
awarded in 2010(a)
31 December
2010
Share No. of No. of Price at No. of
type shares shares award shares
Paul
Polman NV
PLC
3,413
3,413
9,484
9,484
€22.53
£19.44
12,897
12,897
(a) Each award of matching shares
maintenance of the underlying
is conditional
bonus shares.
and
The
vests
2010
three years
award was
after the
made at
date
grant
of the award subject to
date 18 March 2010.
continued employment and