Unilever 2013 Annual Report Download - page 71

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REMUNERATION POLIY  SUPPLEMENTARY INFORMATION
LAWBAK, DISRETION AND FLEXIBILITY
On 1 January 2014 claw-back and ultmate remedy were enacted n Dutch law Varable remuneraton may be reclamed f t has been
pad on the bass of ncorrect nformaton regardng the achevements or the crcumstances on whch the remuneraton depends The
Boards, actng on the proposal of the ommttee, are authorsed to adjust the value of varable remuneraton (upwards and downwards)
f payment of such remuneraton would be unacceptable n accordance wth the prncples of reasonableness and farness
For awards under the MCIP, the Commttee may change the terms of a performance measure or target n accordance wth ts terms or f
anythng happens whch causes the ommttee reasonably to consder t approprate to do so For awards under the SIP, the Commttee,
wth the consent of the Boards, may change the terms of a performance measure or target durng the performance perod to take nto
account any structural changes relatng to the shares or the roup (eg rghts ssues) n accordance wth establshed market practce
The Commttee reserves the rght to make any remuneraton payments and payments for loss of offce (ncludng exercsng any
relevant dscretons) notwthstandng that they are not n lne wth the Polcy where the terms of the payment were agreed () before the
Polcy came nto effect or () at a tme when the relevant ndvdual was not a Drector of Unlever NV or PLC and, n the opnon of the
ommttee, the payment was not n consderaton for the ndvdual becomng a Drector of Unlever NV or PLC For these purposes,
‘payments’ ncludes the ommttee satsfyng awards of varable remuneraton and, n relaton to an award over shares, the terms of
the payment are ‘agreed’ at the tme the award s granted
LEAY PLAN SHARE MATHIN PLAN
Pror to ther partcpaton n the MIP, Executve Drectors were requred to nvest 25% of ther bonus nto shares and hold them for a
mnmum perod of three years under the Share Matchng Plan The Executve Drectors would then receve a correspondng matchng
award n the form of NV and PL shares The matchng shares would normally vest after three years, provded the underlyng shares
have been retaned durng ths perod and the Executve Drector has not resgned or been dsmssed The last award under the Share
Matchng Plan was made n 2011, relatng to the annual bonus earned for 2010, and wll vest n March 2014 (see page 77 for detals)
PERFORMANE MEASURES AND THE LINK TO STRATEY
Performance measures are selected to algn wth Unlever’s clearly stated growth ambton and our long-term busness strategy
Unlever’s prmary busness objectve s to generate a sustanable mprovement n busness performance through ncreasng the underlyng
value and volume of sales whle steadly mprovng core operatng margns and cash flow
The measures chosen for the annual and long-term ncentves support the delvery of ths objectve Performance measures focus
management on the delvery of a combnaton of top-lne revenue growth and bottom-lne proft growth that Unlever beleves wll buld
shareholder value over the longer term Total shareholder return measures Unlever’s success relatve to peersThe followng sets out the
performance measures for short- and long-term executve ncentve plans to be awarded n 2014 as well as the busness performance
and the behavours that they drve
INENTIVE PLAN PERFORMANE MEASURE LINK TO STRATEY
SHORT TERM
ANNUAL BONUS
Underlyng sales growth Supports the achevement of Unlever’s growth ambton
Underlyng volume growth Supports the achevement of Unlever’s growth ambton
ore operatng margn mprovement Supports the achevement of proftable growth
LON TERM
MIP AND SIP
Underlyng sales growth Supports the achevement of Unlever’s ambton to delver sustanable
growth over the longer term
ore operatng margn mprovement Supports the achevement of Unlever’s ambton to delver sustanable
proftable growth over the longer term
umulatve operatng cash flow Supports the achevement of Unlever’s ambton to delver shareholder
value
Relatve total shareholder return Supports the achevement of Unlever’s ambton to delver greater
long-term shareholder value than our compettors
68 Unlever Annual Report and Accounts 2013overnance
DIRETORS’ REMUNERATION
REPORT ONTINUED