Unilever 2011 Annual Report Download - page 76

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73
4. Employees
4A. Staff and management costs
Staff costs
€ million
2011
€ million
2010
€ million
2009
Remuneration of employees (4,596) (4,572) (4,162)
Pensions and other post-employment benefits (17) (276) (256)
Social security costs (627) (607) (610)
Share-based compensation costs (105) (144) (195)
(5,345) (5,599) (5,223)
Average number of employees during the year
’000
2011
’000
2010
’000
2009
Asia Africa CEE 98 96 98
The Americas 42 40 41
Western Europe 29 29 29
169 165 168
Key management compensation
€ million
2011
€ million
2010
€ million
2009
Salaries and short-term employee benefits (15) (17) (13)
Non-Executive Directors’ fees (2) (2) (2)
Post-employment benefits (2) (2) (2)
Share-based benefits (11) (10) (7)
(30) (31) (24)
Of which:
Executive Directors (10) (7) (7)
Non-Executive Directors (2) (2) (2)
Other (18) (22) (15)
(30) (31) (24)
Key management personnel are defined as the members of the Unilever Leadership Executive (ULE) and the Non-Executive Directors.
Details of the remuneration of Directors are given in the parts noted as audited in the Directors’ Remuneration Report on pages 50 to 59.
4B. Pensions and similar obligations
For defined benefit plans, operating and financing costs are recognised separately in the income statement. The amount charged
to operating cost in the income statement is the cost of accruing pension benefits promised to employees over the year, plus the
costs of individual events such as past service benefit enhancements, settlements and curtailments (such events are recognised
immediately in the income statement). The amount charged or credited to financing costs includes a credit equivalent to the
Group’s expected return on the pension plans’ assets over the year, offset by a charge equal to the expected increase in the plans’
liabilities over the year due to the passage of time. Any differences between the expected return on assets and the return actually
achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are
recognised immediately in the statement of comprehensive income.
The defined benefit plan surplus or deficit in the balance sheet comprises the total for each plan of the fair value of plan assets less
the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds).
All defined benefit plans are subject to regular actuarial review using the projected unit method, either by external consultants or
by actuaries employed by Unilever. The Group policy is that the most important plans, representing approximately 80% of the
defined benefit liabilities, are formally valued every year. Other principal plans, accounting for approximately a further 15% of
liabilities, have their liabilities updated each year. Group policy for the remaining plans requires a full actuarial valuation at least
every three years. Asset values for all plans are updated every year.
For defined contribution plans, the charges to the income statement are the company contributions payable, as the company’s
obligation is limited to contributions paid into the plans. The assets and liabilities of such plans are not included in the balance
sheet of the Group.
Unilever Annual Report and Accounts 2011
Financial statements