Unilever 2015 Annual Report Download - page 75

PAYIN FOR
PERFORMANE
The focus of our package s on varable pay, based on annual and long-term performance Performance-
related elements are structured so that target levels of reward are compettve, but Executve Drectors
can only earn hgher rewards f they exceed the ongong standards of performance that Unlever requres
ALININ
PERFORMANE
MEASURES
WITH STRATEY
The performance measures for our annual and long-term plans have been selected to support our
busness strategy and the ongong enhancement of shareholder value through a focus on ncreasng
sales, mprovng margn, cash generaton and returns for shareholders
DELIVERIN
SUSTAINABLE
PERFORMANE
Acknowledgng that success s not only measured by delverng fnancal returns, we also consder
the qualty of performance n terms of busness results and leadershp, ncludng corporate socal
responsblty and progress aganst the USLP, when determnng rewards
To ensure that remuneraton arrangements fully support our sustanablty agenda, the personal
performance goals under the annual bonus nclude USLP targets, where relevant
ALINMENT
WITH
SHAREHOLDER
INTERESTS
The maorty of the package for our Executve Drectors s delvered n Unlever shares to ensure that the
nterests of executves are algned wth shareholders’ nterests Ths s further supported by sgnfcant
shareholdng requrements, ensurng that a substantal porton of each Executve Drector’s personal
wealth s lnked to Unlever’s share prce performance
Non-Executve Drectors are also encouraged to buld up ther personal holdng of Unlever shares to
ensure algnment wth shareholders’ nterests
PAYIN
OMPETITIVELY
The overall remuneraton package offered to Executve Drectors should be suffcently compettve to
attract and retan hghly experenced and talented ndvduals, wthout payng more than s necessary
PREVENTIN
INAPPROPRIATE
RISKTAKIN
The ommttee beleves that Unlever’s rsk management process provdes the necessary control to
prevent napproprate rsk-takng When the ommttee revews the structure and levels of performance-
related pay for Executve Drectors and other members of the Unlever Leadershp Executve (ULE), t
consders whether these mght encourage behavours that are ncompatble wth the long-term nterests
of Unlever and ts shareholders or that may rase any envronmental, socal or governance rsks Where
necessary, the ommttee would take approprate steps to address ths
THE PAKAE HAS BEEN DESINED BASED ON THE FOLLOWIN KEY PRINIPLES
REMUNERATION PRINIPLES
SUPPORTIN THE DELIVERY OF OUR STRATEY THROUH
REMUNERATION ARRANEMENTS
Our vson s to accelerate growth n the busness, whle reducng
our envronmental footprnt and ncreasng our postve socal
mpact, through a focus on our brands, our operatons, our people
and the Unlever Sustanable Lvng Plan (USLP) Remuneraton s
one of the key tools that we have as a busness to help us to
motvate our people to acheve our goals
Our remuneraton arrangements are desgned to support our
busness vson and the mplementaton of our strategy The key
elements of our remuneraton package for Executve Drectors are
summarsed below
FIXED
ELEMENTS
PERFORMANCE-RELATED
ELEMENTS
Base salary Fixed allowance
and other
benefits
Annual bonusLonger-term:
GSIP
Longer-term:
MCIP
68 Unilever Annual Report and Accounts 2015Governance
DIRETORS’ REMUNERATION REPORT ONTINUED