Unilever 2015 Annual Report Download - page 89

PERENTAE HANE IN REMUNERATION OF DIRETOR UNDERTAKIN THE ROLE OF HIEF EXEUTIVE OFFIER
The table below shows the percentage change from 2014 to 2015 for base salary, bonus and benefts (excludng penson) for both the
EO and all UK and Dutch management n Unlever The subset of UK and Dutch management has been used as a far representaton
of our dual lstng status
% change from 2014 to 2015 Salary Bonus
Benefts
(not ncludng
penson)
EO(a)(b) 113% 558% 145%
UK and Dutch management(c) 103% 778% 38%
(a) alculated usng the data from the Executve Drectors sngle fgure table on page 71
(b) It s noted that although the EO’s salary has ncreased by 113% n the above table, ths s due to currency movements, rather than a change n base salary whch
was £1,010,000 n both 2014 and 2015 urrency movements also had a smlar mpact on benefts and bonus
(c) In addton to the above, whle the table shows that the average base salary costs for all employees ncreased by 103% for the subset of UK and Dutch
Management, ths s drven by a proportonately larger ncrease n the total headcount durng the year The average ncrease was approxmately 123%
f the 2014 UK and Dutch management populaton reman constant The same apples for both benefts and bonus numbers where, on a constant bass,
the average beneft provson ncreased by 789% rather than 38% and the bonuses ncreased by 1084% rather than the 778% dsclosed
RELATIVE IMPORTANE OF SPEND ON PAY
The chart below shows the relatve spend on pay compared wth dvdends pad to Unlever shareholders and core earnngs ore
earnngs represent the net proft attrbutable to Unlever shareholders, adusted for non-core tems Over tme, both core earnngs
and core earnngs growth provde a good reference pont to compare spend on pay
RELATIVE IMPORTANCE OF SPEND ON PAY
Core earnings(a)Dividends paid to
Unilever shareholders
Total staff costs
12.4%
6.5%
8.3%
2014 2015
€0m
€1,000m
€2,000m
€3,000m
€4,000m
€5,000m
€6,000m
€7,000m
(a) In calculating core earnings, net profit attributable to shareholders’
equity is adjusted to eliminate the post tax impact of non-core items.
Refer to note 7, and the table entitled ‘Calculation of core earnings’
on page 108 for reconciliation of core earnings to net profit attributable
to shareholders’ equity.
THE OMPENSATION OMMITTEE
In lne wth the UK orporate overnance ode requrement D21, the ommttee’s terms of reference state t shall be comprsed of
three Non-Executve Drectors (other than the harman, who may be apponted as an addtonal member) The quorum for a meetng of
the ommttee s two Non-Executve Drectors
Durng 2015 the ommttee’s membershp changed sgnfcantly, due to drectors choosng not to put themselves forward for re-electon,
and beng apponted In Aprl 2015, Kees Storm and Paul Walsh chose not to put themselves forward for re-electon as Non-Executve
Drectors Ann Fudge succeeded Paul Walsh as char of the ommttee and Nls Andersen oned the ommttee as a member at ths tme
From 30 Aprl 2015 untl 1 July 2015 the ommttee comprsed three Non-Executve Drectors ncludng the harman, Mchael Treschow
Vttoro olao oned the ommttee on 1 July 2015, mmedately upon hs appontment as a Non-Executve Drector becomng effectve
The ommttee revewed ts terms of reference durng the year The ommttee’s revsed terms of reference are contaned wthn
‘The overnance of Unlever’, and are also set out on our webste
wwwunlevercom/corporategovernance
Pursuant to the ommttee’s self-assessment carred out n 2014, a specfc remuneraton module was added to the nducton
programme for Non-Executve Drectors n 2015 As part of the nternal Board evaluaton carred out n 2015, the Boards evaluated
the performance of the ommttee The ommttee also carred out an assessment of ts own performance n 2015 Whlst overall
the ommttee members concluded that the ommttee s performng well, the ommttee has agreed to further enhance ts
effectveness and that of the Boards by keepng the Boards nformed of the progress of the ommttee’s revew of the executve
remuneraton framework n 2016, ncludng any consultatons wth shareholders, n a tmely manner so as to further enhance the Boards’
decson-makng around proposals to extend or modfy the Remuneraton Polcy
82 Unilever Annual Report and Accounts 2015Governance
DIRETORS’ REMUNERATION REPORT ONTINUED