Unilever 2015 Annual Report Download - page 81

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Performance aganst targets
Over the past three years, Unlever has consstently delvered sold fnancal performance despte volatle market condtons Underlyng sales
growth durng ths perod was 38% per annum and core operatng margn mprovement over the perod was an average of 037 percentage
ponts per year, demonstratng management’s drve for consstent top and bottom lne growth Unlever also generated strong operatng cash
flow n the perod, wth cumulatve operatng cash flow of 166 bllon Total shareholder return (TSR) over ths three-year perod was below
the performance of many of our peers and as such no part of the SIP and MIP awards related to TSR wll vest On the bass of ths
performance, the ommttee consders that the formulac outcomes for SIP and MIP vestng are a far reflecton of Unlever’s performance
over the perod and determned that the SIP awards granted to Executve Drectors n 2013 wll vest at 98% of the ntal award level (e 49% of
maxmum) The ommttee also determned that MIP awards granted to Executve Drectors n 2013 wll vest at 98% of ntal award levels
(vestng of MIP s capped at 150% for Executve Drectors) e 65% of maxmum awards
(F) ONDITIONAL SUPPLEMENTAL PENSION (AUDITED)
EO Paul Polman
ondtonal supplemental penson provson agreed wth Paul Polman on hrng, whch s condtonal on hs 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 Ths was £117,123
based on 12% of a capped salary of £976,028 for 2015
FO Jean-Marc Hut
Jean-Marc Hut dd not receve a condtonal supplemental penson
() SHARE INENTIVES  DUTH LAW REQUIREMENT (AUDITED)
As per the Dutch requrements, these costs are non-cash costs and relate to the expenses recognsed for the perod followng IFRS 2 Ths
s based on share prces on grant dates and a 98% adustment factor for SIP shares and MIP matchng shares awarded n 2015, 2014 and
2013 Jean-Marc Hut’s SIP and MIP awards granted n 2014 and 2015 have lapsed n full on hs departure on 1 October 2015 Further
detals 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