Unilever 2012 Annual Report Download - page 81

78 Unilever Annual Report and Accounts 2012Report of the Directors overnance
DIRETORS’ REMUNERATION REPORT continued
Pensons (audited)
Paul Polman
The total pension cost including death-in-service benefits and administration costs and the company’s conditional supplemental
pension provision was €264,000. This total pension cost breaks down as follows:
• Paul Polman elected to allocate some of his fixed allowance to his pension. The company therefore contributed €82,000 of the
fixed allowance into his own defined contribution pension plan.
• Paul Polman also elected to sacrifice some of his salary to make an additional pension contribution. The company therefore
contributed €16,000 in to the defined contribution pension plan (this amount was deducted from the salary figure reported in the
Remuneration for individual Executive Directors table above).
• The additional accrual for Paul Polman’s conditional supplemental pension, which 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,
was €134,000.
• The cost of the provision of death-in-service benefits and administration was €32,000.
Jean-Marc Hut
Jean-Marc Huët did not elect to allocate any of his fixed allowance to his pension. The total cost of his death-in-service benefit
was€15,000.
Amounts have been translated into euros using the closing exchange rate for 2011: €1 = £0.8386.
Share Matchng Plan (audited)
Balance of
condtonal shares at
1 January 2012
ondtonal
shares vested
n 2012(a)
Balance of
condtonal shares at
31 December 2012
Share type No of shares No of shares Prce at award No of shares
Paul Polman NV 22,829(b) 3,413 2599 19,416
PL 22,829(b) 3,413 £2089 19,416
Jean-Marc Huët NV 5,047(c) – – 5,047
PL 5,047(c) – – 5,047
(a) Each award of matching shares is conditional and vests three years after the date of the award subject to continued employment and maintenance of the
underlying bonus shares. The Committee considers that there is no need for further performance conditions on the vesting of the matching shares because
the number of shares is directly linked to the annual bonus (which is itself subject to demanding performance conditions). In addition, during the vesting
period the share price of NV and PLC is influenced by the performance of Unilever. The shares vested on 19 March 2012.
(b) Of which 9,484 shares awarded on 18 March 2010 and 9,932 on 14 March 2011.
(c) Awarded on 14 March 2011.
Management o-Investment Plan (audited)
Balance of
condtonal shares
at 1January 2012
ondtonal
shares awarded
n 2012(a)
Balance of
condtonal shares at
31 December 2012
Share type Orgnal award
(Performance
perod
1 January 2012
to 31December
2014)
Prce at
award
Dvdend
shares
accrued
durng the
year (b)
Paul Polman NV –17,772 2562 641 18,413
PL –17,772 £2063 706 18,478
Jean-Marc Huët NV –3,649 2562 132 3,781
PL –3,649 £2063 145 3,794
(a) Each award of conditional matching shares vests three years after the date of the award, subject to performance conditions based on underlying sales
growth, core operating margin improvement, cumulative operating cash flow and relative total shareholder return (further details can be found on page 73).
Awards are all subject to continued employment and maintenance of the underlying investment shares. On 17 February 2012, the grant date, Paul Polman
and Jean-Marc Huët invested in the MCIP 60% and 25% respectively of their annual bonus earned during 2011 and paid in 2012.
(b) Reflects reinvested dividend equivalents accrued during 2012 and subject to the same performance conditions as the underlying matching shares.