Unilever 2015 Annual Report Download - page 76

ANNUAL REMUNERATION REPORT
The followng sets out how Unlever’s Remuneraton Polcy, whch s avalable on our webste, wll be mplemented n 2016 and how t was
mplemented n 2015
wwwunlevercom/ara2015/downloads
IMPLEMENTATION OF THE REMUNERATION POLIY IN 2016 FOR EXEUTIVE DIRETORS
raeme Ptkethly
raeme Ptkethly became FO and a member of the ULE on 1 October 2015 He wll be proposed for electon as an Executve Drector
of the Boards of NV and PL at the AMs n Aprl 2016 and therefore hs 2015 remuneraton s not dsclosed heren The ommttee
approved the followng remuneraton package for raeme Ptkethly, whch came nto effect from 1 October 2015
• base salary £625,000
• fxed allowance £200,000
• annual bonus for 2016 target award 100% of base salary wth a maxmum of 150% of base salary Before raeme became FO
hs target award was 70% of base salary These rates have been appled pro rata for 2015 wth the hgher rate from the date of
hs appontment as FO
• MIP share award from 2016 a mnmum of 25% of gross bonus must be, and up to 60% may be, nvested n Unlever shares and
matched under the terms of the MIP wth vestng n the range of zero to 150%
• SIP share award from 2016 target award of 150% of base salary, e the 2016 award has a face value of £937,500 under the terms
of the SIP, to vest n 2019 n the range of zero to 200% and
• death, dsablty and medcal nsurance cover and actual tax return preparaton costs n lne wth Unlever’s Remuneraton Polcy
raeme’s package, as above, wll reman unchanged f he s apponted as an Executve Drector at the AMs n Aprl 2016 Hs
remuneraton package s n accordance wth the approved Remuneraton Polcy The ommttee beleves that the postonng of the
package represents an acceptable balance n vew of varous consderatons, such as Jean-Marc Hut’s package, compettve external
market pay rates across Unlever’s peer group and raeme’s prevous package
ELEMENTS OF REMUNERATION
FIXED ELEMENTS
OF REMUNERATION
AT A LANE DESRIPTION
BASE SALARY Salary effectve from
1 January 2016
• EO – £1,010,000
(unchanged from 2015)
• FO – £625,000
The ommttee recognses that the EO’s salary s below compettve benchmarks
compared to smlar szed UK and European companes Havng regard to the EO’s
sustaned track record of good performance, the ommttee has expressed ts
ntenton to make further ncreases to salary to address ths over the last few years
However, the ommttee once more agreed to Paul Polman’s request to not ncrease
hs base salary n lght of hs vew that the EO should be rewarded through
performance-based pay rather than a salary ncrease Accordngly, the EO’s salary
wll be held steady for the fourth year n a row
raeme Ptkethly’s salary has been set n accordance wth the approved Remuneraton
Polcy and wth regard to the prevous FO’s salary level, compettve external market
pay rates across Unlever’s peer group and hs prevous package nsde Unlever
FIXED ALLOWANE Fxed allowance for 2016
• EO – £250,000
• FO – £200,000
A fxed allowance not lnked to base salary s provded as a smple, compettve
alternatve to the provson of temsed benefts and pensons
OTHER BENEFIT
ENTITLEMENTS
• Amounts for other
benefts are not known
untl the year end
In lne wth Unlever’s Remuneraton Polcy, Executve Drectors wll be provded wth death,
dsablty and medcal nsurance cover and actual tax return preparaton costs n 2016
wwwunlevercom/ara2015/downloads
In lne wth the commtments made to the current EO on recrutment and ncluded
n the Remuneraton Polcy, Unlever also pays the EO’s socal securty oblgatons n
hs country of resdence to protect hm aganst the dfference between employee socal
securty oblgatons n hs country of resdence versus the UK
ondtonal supplemental penson
The EO also receves a condtonal supplemental penson accrual to compensate hm
for the arrangements forfeted on leavng hs prevous employer The EO wll receve
a contrbuton to hs supplemental penson of 12% of the lower of hs actual base salary
over the year and hs 2011 base salary (£920,000) plus 3% per annum The cap for 2016
has been kept at £976,028 wth a maxmum contrbuton of £117,123
Ths supplemental penson accrual s condtonal on the EO remanng n employment
wth Unlever to age 60 and subsequently retrng from actve servce or hs death or
total dsablty pror to retrement
69Unilever Annual Report and Accounts 2015 Governance