Unilever 2012 Annual Report Download - page 68

ABOUT UNILEVER GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
65Unilever Annual Report and Accounts 2012 Report of the Directors overnance
Element Purpose Operaton Opportunty Performance hanges Supportng
and lnk to metrcs made to nformaton
strategy polcy
Other benefts Provides certain Provision of death, disability Social security n/a None For 2013, the accrual
plus penson benefits on a and medical insurance obligation in CEO’s for the CEO’s conditional
cost-effective cover and actual tax return country of residence supplemental pension
basis. preparation costs. dependent on will be capped at £117,123.
Unilever will also pay earnings in year. For details of benefits
the CEO’s social security Conditional provided during 2012 see
obligation in the CEO’s supplemental pension page 77.
country of residence to accrual capped from
protect him against the 2012 onwards at 12%
difference between the of the lower of actual
employee social security base salary or 2011
obligations in his country base salary (£920,000)
of residence versus the UK. plus 3% pa.
In line with the commitments
made to the CEO upon
recruitment, he also receives
a conditional supplemental
pension accrual to
compensate him for the
arrangement forfeited
on leaving his previous
employer. This supplemental
pension accrual is
conditional on the CEO
remaining in employment
with Unilever to age 60 and
subsequently retiring from
active service or his death
or total disability prior to
retirement.
Annual bonus The annual Unilever targets set Target bonus Annual bonus None For 2013 bonuses,
bonus has annually to ensure they opportunities (as awards are financial performance
been designed are appropriately stretching percentage of base based on: actual will be assessed against
to support for the delivery of threshold, salary) are: performance the following metrics:
our business
strategy and
the ongoing
enhancement
of shareholder
value through
a focus on the
delivery of
annual financial,
strategic and
operational
objectives.
target and maximum
performance.
Payouts, determined by
the Committee, depend on
actual performance against
targets, the quality of results
and performance against
personal performance goals.
Annual bonuses may
be subject to ‘clawback’
in the event of a significant
downward revision of
the financial results
•CEO – 120%
•other Executive
Directors – 100%
Maximum bonus
opportunities (as
percentage of base
salary) are:
•CEO – 200%
•other Executive
Directors – 150%
against Unilever
targets, the quality
of results and
performance
against personal
performance goals.
Performance
metrics are
selected to support
the annual business
strategy and the
enhancement of
shareholder value.
•underlying sales growth
(1/3);
•underlying volume growth
(1/3); and
•core operating margin
improvement (1/3).
In determining annual
bonus awards the Committee
also assesses the delivery
against personal
performance goals and
the quality of performance;
in terms of both business
of the Group. Unilever targets results and leadership,
Unless otherwise
determined by the
Committee, Executive
Directors are required
to invest at least 25% of
their annual bonus into
the MCIP (see page 66).
and personal
performance goals
for the Executive
Directors are set
by the Committee
on an annual basis
and may be changed
as appropriate.
including corporate social
responsibility and progress
against the delivery of
USLP goals.