Unilever 2015 Annual Report Download - page 79

ELEMENTS OF SINLE FIURE REMUNERATION 2015
(A) BASE SALARY (AUDITED)
Salary set n sterlng and pad n 2015
• EO – £1,010,000
• FO – £535,500
(B) FIXED ALLOWANE AND OTHER BENEFITS (AUDITED)
For 2015 ths comprses Paul Polman
EO (UK)
(£)(a)
Jean-Marc Hut
FO (UK)
(£)(a)(b)
2015 2015
Fxed allowance 250,000 165,000
Medcal nsurance cover and actual tax return preparaton costs 41,053 27,132
Provson of death-n-servce benefts and admnstraton 9,797 5,758
Payment to protect aganst dfference between employee socal securty oblgatons n country of resdence
versus UK 352,555 n/a
Total 653,405 197,890
(a) The numbers n ths table are quoted n sterlng and have been translated nto euros for the sngle fgure of remuneraton table above usng the average
exchange rate over 2015 of 1 = £07254
(b) Jean-Marc Hut ceased to be an Executve Drector of Unlever on 1 October 2015
() ANNUAL BONUS (AUDITED)
Annual bonus 2015 actual outcomes
• EO – £1,866,480 (whch s 92% of maxmum, 185% of base salary)
• FO – £589,050 (whch s 73% of maxmum, 110% of base salary – for the nne months from January through September 2015)
Ths ncludes cash and, for the EO, the porton of annual bonus re-nvested n shares under the MIP See below for detals
Performance aganst targets
Target
PERFORMANCE
Performance metrics Threshold
Result
vesting
(% of target)
Maximum
Core operating margin improvement
compared to prior year (⅓)
Free Cash Flow growth (⅓)
Underlying sales growth (⅓) 4.1%
11.6%
124%6%
15%
1%
5% 131%
100%
Overall performance ratio (based on
actual performance bonus formula)200%0% 118%
Actual performance ratio
(after Committee discretion)200%0% 110%
0percentage
points 0.6percentage
points
0.3percentage
points
At the begnnng of the year, the ommttee set stretchng fnancal performance targets whch management delvered aganst durng
the course of the year In 2015 underlyng sales growth mproved to 41%, ahead of our markets Improvement n core operatng margn
compared wth 2014 was 03 percentage ponts drven by margn-accretve nnovaton, prcng and contnued delvery from our savngs
programmes, whch more than offset currency-related cost ncreases All categores delvered progress aganst ther strategc prortes
For the annual bonus calculatons, we have adusted free cash flow (FF) downwards for one-offs from 48 bllon to 43 bllon
After that adustment, the growth n FF was stll strong, wth an 116% mprovement drven by the ncrease n core operatng proft and
an mprovement n year-end workng captal On a formulac bass, the outcome of Unlever’s 2015 performance was 118% of target
However, Unlever’s performance over 2015 was not wthout challenges Further progress needs to be made n wnnng market share,
aglty and cost control Accordngly, the ommttee exercsed ts dscreton to reduce the formulac outcome for the 2015 annual bonus
from 118% to 110% The ommttee consdered ths to be a far representaton of the performance delvery by the executve team durng
2015 In the past sx years, ncludng 2015, the ommttee has exercsed ts dscreton to adust the formulac outcome of the annual bonus
calculaton downwards four tmes and upwards twce
72 Unilever Annual Report and Accounts 2015Governance
DIRETORS’ REMUNERATION REPORT ONTINUED