Unilever 2013 Annual Report Download - page 77

(c) ANNUAL BONUS (AUDITED)
Annual bonus 2013 actual outcomes
• EO – £1,583,175 (whch s 78% of maxmum, 157% of base salary)
• FO – £746,130 (whch s 70% of maxmum, 105% of base salary)
Ths ncludes cash and shares nvested under the MIP See below for detals
Performance aganst targets
Target
PERFORMANCE
Performance measures Threshold
Result
vesting
(% of target)
Maximum
Core operating margin improvement
compared with prior year (1/3)
Underlying volume growth (1/3)
Underlying sales growth (1/3) 4.3%
2.5%
0.4
77%8%
5%
0.60
2%
0% 100%
133%
Overall performance ratio
(based on actual performance) 200%0% 103%
Reduced performance ratio
(after committee discretion) 200%0% 95%
percentage
points percentage points
percentage
points
2013 has been a year of sold performance, especally gven the tough economc and compettve envronment Unlever has faced At the
start of the year, the ommttee set very challengng targets and we are pleased wth progress aganst these goals Underlyng sales
growth was 43%, whch though slghtly below target performance represents strong performance n challengng markets and
ntensfyng competton Underlyng volume growth was 25% resultng n target payout Improvement n core operatng margn
compared wth 2012 was 04 percentage ponts, whch was ahead of target
2013 was not, however, wthout ts challenges and, n order to recognse ths and n partcular a tough thrd quarter, the ommttee
exercsed ts udgement to reduce the overall roup bonus score from 103% of target to 95% of target
In determnng bonus outcomes for the EO, the ommttee also consdered hs personal performance and leadershp, ncludng progress
aganst the delvery of USLP goals and hs overall contrbuton to makng sustanable lvng commonplace As a consequence of that
revew the EO was awarded a personal performance multpler of 1375% Ths resulted n the EO recevng a bonus of 157% of hs base
salary Ths s calculated as follows
Target bonus: 120% of
base salary = £1,212,000
Unilever’s 2013
performance ratio = 95%
Personal performance
multiplier = 137.5%
£1,583,175
(157% of base salary)
In determnng bonus outcomes for the FO, the ommttee also consdered hs personal performance and leadershp, ncludng
corporate socal responsblty and progress aganst the delvery of USLP goals As a consequence of that revew the FO was awarded a
personal performance multpler of 110% Ths resulted n the FO recevng a bonus of 105% of hs base salary Ths s calculated as
follows
Target bonus: 100% of
base salary = £714,000
Unilever’s 2013
performance ratio = 95%
Personal performance
multiplier = 110%
£746,130
(105% of base salary)
2014 MIP AWARDS (BASED ON 2013 ANNUAL BONUS OUTOMES)
On 14 February 2014, the EO nvested 60% (£949,905) and the FO nvested 25% (£186,533 ) of ther 2013 bonus n MIP nvestment
shares The EO elected to nvest fully n NV shares The FO elected to receve a 50%/50% mx of PL / NV shares
They each receved a correspondng award of performance-related MIP matchng shares (awarded n the same form as the
nvestment shares) MIP matchng awards are subect to the same performance measures as SIP awards Further nformaton on
matchng awards s set out on page 80
No matchng awards under the MIP vested based on performance n the year ended 31 December 2013
74 Unlever Annual Report and Accounts 2013overnance
DIRETORS’ REMUNERATION
REPORT ONTINUED