Unilever 2012 Annual Report Download - page 67

64 Unilever Annual Report and Accounts 2012Report of the Directors overnance
DIRETORS’ REMUNERATION REPORT continued
AT A LANE
The key elements of the remuneration for Executive
Directors are:
• Fixed elements – base salary and fixed allowance
• Linked to short-term performance – annual bonus
• Linked to long-term performance – MCIP and GSIP
The following section sets out Unilever’s 2013 remuneration policy which remains unchanged from previous years.
Element Purpose Operaton Opportunty Performance hanges Supportng
and lnk to metrcs made to nformaton
strategy polcy
Base salary Supports the Set by the Boards on the Unilever’s policy is n/a None For 2013, base salaries for
recruitment recommendation of the to set the reference Executive Directors are:
and retention
of Executive
Directors of the
Committee and generally
reviewed once a year against
three reference points:
point for all Executive
Director salaries at
around median
•CEO – £1,010,000
•CFO – £714,000
calibre required
to implement
our strategy.
(i) peers in other global
companies of a similar
financial size (market
capitalisation and turnover)
and complexity to Unilever,
taking into consideration
factors such as the number
of employees, human capital
complexity and international
nature of the business*;
against an appropriate
peer group and then
to set individual
base salary levels
at an appropriate
level relative to
that reference point
by taking into
consideration the
individual’s skills,
experience and
(ii) the individual’s performance.
skills, experience and
performance; and The Boards, on
the proposal of the
(iii) pay and conditions
across the wider
Committee, apply
that approach to
organisation.
Base salaries may be
manage the base
salary levels of the
Executive Directors.
reviewed more often than
annually in exceptional
circumstances.
Base salary changes are
usually effective from
1January.
Fxed Provides a The fixed allowance is Unilever’s policy is n/a None For 2013, fixed allowances
allowance competitive reviewed periodically by to set the reference for Executive Directors are:
alternative to
the provision
of itemised
the Committee against
market benchmarks based
on other companies of a
point for fixed
allowances at or
below median against
•CEO – £250,000
•CFO – £300,000
benefits and similar size and complexity an appropriate peer For the CFO, this includes
pension. in line with the approach group and then housing allowance, which is
Simplifies
the package.
Delinks
increases in
benefits and
allowances
from increases
in base salary.
to base salary.
Changes in the fixed
allowance are usually
effective from 1 January.
to make as few
variations as possible
based on individual
circumstances.
The Boards, on
the proposal of the
Committee, apply
that approach to
manage the fixed
being phased out to nil in 2015.
At current rates the CFO’s fixed
allowance will be reduced to
£260,000 per annum in 2014 and
to £220,000 per annum in 2015.
Paid in cash. allowances of the
Executive Directors.
* For 2012, the peer group included: Anglo American, AstraZeneca, BASF, Bayer, BHP Billiton, BMW, BP, British American Tobacco, BT, Carrefour, Centrica, Daimler, GlaxoSmithKline,
Imperial Tobacco, Metro, National Grid, Nestlé, Novartis, Peugeot, Rio Tinto, Roche, Royal Dutch Shell, Sanofi, Siemens, Tesco, ThyssenKrupp, Total, Vodafone, Volkswagen and
Xstrata. The peer group used for benchmarking purposes is reviewed at appropriate intervals to ensure it remains appropriate.