Unilever 2013 Annual Report Download - page 65

POLIY REPORT
POLIY TABLE
The followng sets out our Drectors’ Remuneraton Polcy (the Polcy) Ths Polcy wll be put forward for shareholder approval at the
2014 AMs Ths Polcy wll apply to payments made from 14 May 2014, the date of the 2014 AMs
PURPOSE AND LINK
TO STRATEY OPERATION OPPORTUNITY PERFORMANE MEASURES SUPPORTIN INFORMATION†
BASE SALARY
Supports the recrutment
and retenton of Executve
Drectors of the calbre
requred to mplement
our strategy Reflects the
ndvdual’s sklls,
experence, performance
and role wthn the Group.
Set by the Boards on the
recommendaton of the
ommttee and generally
revewed once a year, wth
new salares usually effectve
from 1 January (although
ncreases may be awarded at
any other tme f the
ommttee consders that s
approprate)
Salares are pad n cash
Salares are set at an
approprate level to attract
and retan Executve
Drectors of the requred
calbre, takng nto account:
() our polcy to generally pay
at around the medan of an
approprate peer group of
other global companes of a
smlar fnancal sze and
complexty to Unlever*;
() the ndvdual’s sklls,
experence and performance;
and
() pay and condtons across
the wder organsaton
Increases wll normally be n
lne wth the range of
ncreases awarded to other
employees wthn the roup
Increases may be above ths
level or appled more
frequently n certan
crcumstances, such as:
• where there s, n the
ommttee’s opnon, a
sgnfcant change n an
Executve Drector’s
scope or role;
• where a new Executve
Drector has been
apponted to the Boards
on a salary lower than the
typcal market level for
such a role and larger
ncreases are justfed as
the Executve Drector
becomes establshed n
the role, subject to
performance and market
condtons; and
• where t s consdered
necessary to reflect
sgnfcant changes n
market practce
The Commttee wll consder
the factors outlned above
and wll determne the
maxmum amount that would
be pad n base salary durng
the polcy perod Any
sgnfcant ncrease would be
subject to pror shareholder
consultaton wth our major
shareholders
n/a † Ths column does not
form part of the
bndng polcy report It
s ntended to provde
addtonal contextual
nformaton for the
reader
For 2014, base salares
for Executve Drectors
are unchanged from
2013 at:
• CEO – £1,010,000
• CFO – £714,000
FIXED ALLOWANE
Provides a simple
competitive alternative to
the provision of itemised
benefits and pension, not
linked to base salary.
The fxed allowance s
revewed perodcally by the
ommttee and changes are
usually effectve from
1 January
Set at an approprate level
takng nto account the
medan of an approprate
peer group n lne wth the
approach to base salary and
ndvdual crcumstances
(such as whether they have
been requred to relocate to
undertake ther role)
Normally, pad monthly n
cash
The Boards retan dscreton
to amend or ncrease the
fxed allowances as s
consdered approprate,
takng nto account relevant
market data and ndvdual
crcumstances Any
sgnfcant ncrease would be
subject to pror shareholder
consultaton wth our major
shareholders
n/a For 2014, fxed
allowances for
Executve Drectors are:
• CEO – £250,000
• CFO – £260,000
The level of fxed
allowance provded to
the FO wll be reduced
n 2015 to £220,000 (at
prevalng rates) to
reflect the phasng-out
of hs annual housng
allowance
* The current peer group ncludes: Anglo Amercan, AstraZeneca, BASF, Bayer, BHP Bllton, BMW, BP, Brtsh Amercan Tobacco, BT, arrefour, entrca,
Damler, Danone, laxoSmthKlne, Imperal Tobacco, L’Oréal, Metro, Natonal rd, Nestlé, Novarts, Recktt Benckser roup, Ro Tnto, Roche, Royal Dutch
Shell, Sanof, Semens, Tesco, Total, Vodafone, Volkswagen The peer group used for benchmarkng purposes s revewed regularly and companes are added
and/or removed at the ommttee’s dscreton to ensure that t remans approprate
62 Unlever Annual Report and Accounts 2013overnance
DIRECTORS’ REMUNERATION
REPORT CONTINUED