Future developments

The Remuneration Committee continues to monitor trends and changes in the market. It keeps a watching brief on the continuing alignment between Unilever’s strategic objectives and the reward policy for Executive Directors.

From 1 January 2008 the UK all-employee pension plan benefit changed for new hires from final salary to a combination of career average earnings (up to a limit of £38 000) and defined contribution above the limit. Existing employees are being given the option to move to the new plan or to remain in the previous plan (subject to certain changes including paying higher individual contributions). The latter affects the UK-based Executive Directors Patrick Cescau and Ralph Kugler.

The performance range for the GSIP 2008 award (performance period 2008-2010) will be in respect of average underlying sales growth of 4%-6.4% per annum and for cumulative ungeared free cash flow €10.5 billion-€15.5 billion.

Read the rest of the Summary remuneration report - Commentary on 2007 remuneration