Remuneration report - Unilever
Remuneration report - Unilever
Remuneration report - Unilever
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Report of the <strong>Remuneration</strong> Committee<br />
(continued)<br />
Executive Directors’ pensions (1)<br />
Pension values for the year ended 31 December 2005 are set out below.<br />
Increase<br />
Increase Transfer value in transfer value Individual Transfer value<br />
Accrued in accrued Accrued of accrued during 2005 contributions of accrued<br />
Age at pension at pension pension at pension at (less individual made during pension at<br />
Name and 31/12/05 31/12/04(2) during 2005 (3) 31/12/05 (2) 31/12/04 (4) contributions) 2005 31/12/05 (4)<br />
base country € ‘000 pa € ‘000 pa € ‘000 pa € ‘000 € ‘000 € ‘000 € ‘000<br />
Current Executive Directors<br />
Patrick Cescau (UK) 57 873 60 933 14 459 2 239 72 16 770<br />
Kees van der Graaf (5) (NL) 55 331 207 538 4 158 2 776 8 6 942<br />
Ralph Kugler (6) (UK) 49 338 58 396 3 647 1 733 31 5 411<br />
Rudy Markham (UK) 59 678 74 752 13 347 1 746 54 15 147<br />
Position changed in 2005<br />
Antony Burgmans (7) (NL) 58 959 155 1 114 14 151 3 738 16 17 905<br />
Former Executive Directors (2005)<br />
Clive Butler (8) (UK) 59 570 48 618 10 959 1 260 17 12 236<br />
Keki Dadiseth (8) (UK) 60 750 43 793 15 156 1 058 23 16 237<br />
André van Heemstra (8) (NL)59 566 18 584 8 609 624 8 9 241<br />
The increase in transfer value during 2005 includes the effect of salary increases, additional service, benefit enhancements and any<br />
changes in actuarial bases.<br />
(1) Figures have been translated into euros where necessary using the following exchange rates: 31 December 2004 €1.00 = £0.7069;<br />
31 December 2005 €1.00 = £0.6864; and average for the year ended 31 December 2005 €1.00 = £0.6837.<br />
(2) Calculated on a deferred basis using the Executive Directors’ service to 31 December 2004 and 31 December 2005 respectively on the basis<br />
that the Executive Directors remain in service until at least age 60 and that the pension payment commences at that time. It includes all<br />
pensions provided from <strong>Unilever</strong> pension plans. In the event that an Executive Director leaves service prior to age 60 and the payment of<br />
pension commences earlier than age 60, the pension payable would be on a reduced basis. The Netherlands-based Executive Director’s<br />
arrangements, which previously operated on the basis of a justifiable expectation and did not provide vested deferred entitlement, have<br />
been converted to a vested benefit, consistent with the treatment adopted for other Netherlands senior executives with similar expectations.<br />
(3) Includes the effect of inflation on the accrued pension at 31 December 2004.<br />
(4) For the Netherlands-based Executive Director’s arrangement calculated on the basis used by the <strong>Unilever</strong> Netherlands pension plan<br />
(‘Progress’), as prescribed by the Netherlands Ministry of Social Affairs and Employment. For the UK based Executive Directors’ arrangement<br />
calculated on the market related basis used by the <strong>Unilever</strong> United Kingdom pension plan (UUKPF), in line with the GN11 guidance note<br />
published by the Institute and Faculty of Actuaries in the United Kingdom. Changes in the bases during 2005 had the effect of significantly<br />
increasing transfer values for the UK based Executive Directors.<br />
(5) Reached age 55 during the year, hence values at 31 December 2005 include the NV arrangement (see footnote 2 above).<br />
(6) Joined the Boards in May 2005. Figures shown in the table above relate to the date of joining the Boards, or the period starting on that<br />
date, as appropriate. Figures at 10 May 2005 include pension, and the transfer value of pension, accrued prior to becoming an Executive<br />
Director.<br />
(7) Changed from Executive to Non-Executive Director in May 2005. Figures shown in the table above are at the date of change or the period<br />
ending on that date, as appropriate.<br />
(8) Stepped down from the Boards in May 2005. Figures shown in the table above are at the date they stepped down, or the period ending on<br />
that date, as appropriate.<br />
The Listing Rules of the Financial Services Authority are different from the Directors’ <strong>Remuneration</strong> Report Regulations 2002 and require<br />
the following disclosures for defined benefit pension plans which are calculated on an alternative basis to those disclosed in the table<br />
above:<br />
• Increase in accrued pension during 2005 (excluding the effect of inflation on the accrued pension at 31 December 2004):<br />
Patrick Cescau €37 000; Kees van der Graaf €204 000; Ralph Kugler €38 000; Rudy Markham €35 000; Antony Burgmans<br />
€147 000; Clive Butler €15 000; Keki Dadiseth €nil; and André van Heemstra €13 000; and<br />
• Transfer value at 31 December 2005 of the increase or decrease in accrued pension during 2005 (excluding the effect of inflation<br />
on the accrued pension at 31 December 2004 and less individual contributions): Patrick Cescau €585 000; Kees van der Graaf<br />
€2 571 000; Ralph Kugler €490 000; Rudy Markham €661 000; Antony Burgmans €2 353 000; Clive Butler €264 000;<br />
Keki Dadiseth €(29 000); and André van Heemstra €172 000.<br />
The Dutch Corporate Governance Code requires the following disclosure of pension service costs charged to operating profit:<br />
Patrick Cescau €693 000; Kees van der Graaf €676 000; Ralph Kugler €162 000; Rudy Markham €275 000; Antony Burgmans<br />
€1 684 000; Clive Butler €257 000; Keki Dadiseth €386 000; and André van Heemstra €268 000.<br />
66 <strong>Unilever</strong> Annual Report and Accounts 2005