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4B PENSIONS AND SIMILAR OBLIGATIONS CONTINUED
ASH FLOW
Group cash flow in respect of pensions and similar post-employment benefits comprises company contributions paid to funded
plans and benefits paid by the company in respect of unfunded plans, as set out in the following table (including the current estimate
of contributions for 2015):
€ million
2015
Estimate
 mllon
2014
€ million
2013
€ million
2012
Company contributions to funded plans:
Defined benefit 390 386 453 435
Defined contributions 160 115 121 116
Benefits paid by the company in respect of unfunded plans:
Defined benefit 150 151 141 170
Group cash flow in respect of pensions and similar benefits 700 652 715 721
The Group’s funding policy is to periodically review the contributions made to the plans while taking account of local legislation.
4C SHAREBASED OMPENSATION PLANS
The fair value of awards at grant date is calculated using appropriate pricing models. This value is expensed over their vesting
period, with a corresponding credit to equity. The expense is reviewed and adjusted to reflect changes to the level of awards
expected to vest, except where this arises from a failure to meet a market condition. Any cancellations are recognised immediately
in the income statement.
As at 31 December 2014, the Group had share-based compensation plans in the form of performance shares, share options and other
share awards.
The numbers in this note include those for Executive Directors shown in the Directors’ Remuneration Report on pages 62 to 77 and
those for key management personnel shown in note 4A on page 93. Non-Executive Directors do not participate in any of the share-
based compensation plans.
The charge in each of the last three years is shown below, and relates to equity settled plans:
Income statement charge
 mllon
2014
€ million
2013
€ million
2012
Performance share plans (186) (221) (147)
Other plans (2) (7) (6)
(188) (228) (153)
PERFORMANE SHARE PLANS
Performance share awards are made under the Management Co-Investment Plan (MCIP) and the Global Share Incentive Plan (GSIP).
The MCIP allows Unilever’s managers to invest up to 60% of their annual bonus in shares in Unilever and to receive a corresponding
award of performance-related shares. Under GSIP Unilever’s managers receive annual awards of NV and PLC shares. The awards
ofboth plans will vest after three years between 0% and 200% of grant level, depending on the satisfaction of performance metrics.
The performance metrics of both MCIP and GSIP are underlying sales growth, operating cash flow and core operating margin
improvement. There is an additional target based on relative total shareholder return (TSR) for senior executives.
A summary of the status of the Performance Share Plans as at 31 December 2014, 2013 and 2012 and changes during the years ended
on these dates is presented below:
2014
Number of
shares
2013
Number of
shares
2012
Number of
shares
Outstanding at 1 January 18,909,204 18,031,101 18,642,656
Awarded 9,724,186 7,780,730 7,036,147
Vested (9,347,225) (5,823,102) (6,277,057)
Forfeited (1,817,874) (1,079,525) (1,370,645)
Outstanding at 31 December 17,468,291 18,909,204 18,031,101
98 Unilever Annual Report and Accounts 2014Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED