Unilever 2013 Annual Report Download - page 67

PURPOSE AND LINK
TO STRATEY OPERATION OPPORTUNITY PERFORMANE MEASURES SUPPORTIN INFORMATION†
ANNUAL BONUS
Incentvses year-on-year
delvery of stretchng
short-term fnancal,
strategc and operatonal
objectives and personal
performance objectives
selected to support our
annual business strategy
and the ongoing
enhancement of
shareholder value.
The ability to recognise
performance through
annual bonus enables us
to control our cost base
flexibly and react to
events and market
circumstances.
Unlever performance
measures and personal
goals for the Executve
Drectors are set by the
ommttee on an annual
bass to ensure that they are
approprately stretchng for
the delvery of threshold,
target and maxmum
performance
The Commttee has
dscreton to adjust the
overall bonus award but may
not exceed the maxmum
potental
Unless otherwse
determned by the
ommttee, Executve
Drectors are requred to
nvest at least 25% and can
nvest up to a maxmum of
60% of ther gross annual
bonus earned n Unlever
shares under the MIP (see
page 65)
Claw-back provsons apply1
Target bonus opportuntes
(as percentage of base
salary) are:
• CEO – 120%
• other Executve Drectors
– 100%
Maxmum bonus
opportuntes (as percentage
of base salary) are:
• CEO – 200%
• other Executve Drectors
– 150%
Bonuses start to be earned
from 0% of salary for
achevng threshold
performance
Performance targets
for the ntal
assessment of
performance are
normally fnancal n
nature, however, the
ommttee may
ntroduce non-fnancal
measures n the future
subject to a mnmum of
50% of targets beng
fnancal n nature
When determnng
payouts the ommttee
may also consder
performance aganst
personal performance
goals and the qualty of
results delvered n
terms of both busness
results and leadershp
Performance s
normally measured
over a one-year perod
n lne wth the fnancal
year end
† 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 bonuses,
fnancal performance
wll be assessed
aganst the followng
measures:
• underlyng sales
growth (1/3);
• underlyng volume
growth (1/3); and
• core operatng
margn
mprovement (1/3)
In addton, when
determnng annual
bonus awards, the
ommttee wll also
consder personal
performance and the
qualty of results n
terms of both busness
results and leadershp,
ncludng corporate
socal responsblty and
progress aganst the
delvery of USLP goals
The Commttee has set
the targets for the 2014
bonuses, but has
chosen not to dsclose
the detals n ths
Report as t s the
opnon of the
ommttee that t
maybe serously
prejudcal to the
nterests of Unlever to
do so However, the
specfc targets and the
extent to whch the
targets have been met,
wll bedsclosed n next
year’s Drectors’
Remuneraton Report
64 Unlever Annual Report and Accounts 2013overnance
DIRECTORS’ REMUNERATION
REPORT CONTINUED