Unilever 2015 Annual Report Download - page 81
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Performance aganst targets
Over the past three years, Unlever has consstently delvered sold fnancal performance despte volatle market condtons Underlyng sales
growth durng ths perod was 38% per annum and core operatng margn mprovement over the perod was an average of 037 percentage
ponts per year, demonstratng management’s drve for consstent top and bottom lne growth Unlever also generated strong operatng cash
flow n the perod, wth cumulatve operatng cash flow of 166 bllon Total shareholder return (TSR) over ths three-year perod was below
the performance of many of our peers and as such no part of the SIP and MIP awards related to TSR wll vest On the bass of ths
performance, the ommttee consders that the formulac outcomes for SIP and MIP vestng are a far reflecton of Unlever’s performance
over the perod and determned that the SIP awards granted to Executve Drectors n 2013 wll vest at 98% of the ntal award level (e 49% of
maxmum) The ommttee also determned that MIP awards granted to Executve Drectors n 2013 wll vest at 98% of ntal award levels
(vestng of MIP s capped at 150% for Executve Drectors) e 65% of maxmum awards
(F) ONDITIONAL SUPPLEMENTAL PENSION (AUDITED)
EO Paul Polman
ondtonal supplemental penson provson agreed wth Paul Polman on hrng, whch s condtonal on hs remanng n employment
wth Unlever to age 60 and subsequently retrng from actve servce or hs death or total dsablty pror to retrement Ths was £117,123
based on 12% of a capped salary of £976,028 for 2015
FO Jean-Marc Hut
Jean-Marc Hut dd not receve a condtonal supplemental penson
() SHARE INENTIVES DUTH LAW REQUIREMENT (AUDITED)
As per the Dutch requrements, these costs are non-cash costs and relate to the expenses recognsed for the perod followng IFRS 2 Ths
s based on share prces on grant dates and a 98% adustment factor for SIP shares and MIP matchng shares awarded n 2015, 2014 and
2013 Jean-Marc Hut’s SIP and MIP awards granted n 2014 and 2015 have lapsed n full on hs departure on 1 October 2015 Further
detals can be found on page 78
(a) Comparator group of 19 companies including Unilever. The comparator group is the same as disclosed on page 71.
25% of target awards vest for threshold performance under the three business-focused performance measures. 50% of target awards vest for threshold
performance under the TSR performance measure.
Performance metrics Threshold
Result
vesting
(% of target)
Maximum
Cumulative operating cash flow (25%)
Core operating margin improvement (25%)
Underlying sales growth (pa) (25%)3.8%
€16.6bn
58%7%
€17.0bn€13.0bn
3%
153%
182%
Total shareholder return (25%)(a) 3rd10th 0%
Overall vesting 98%
15th
0percentage
points 0.37 percentage
points0.5percentage
points
PERFORMANCE
74 Unilever Annual Report and Accounts 2015Governance
DIRETORS’ REMUNERATION REPORT ONTINUED