Embed Size (px)
Citation preview
Excellence in Action:The Unilever Global Mobility Policy
SPEAKERS
Leonie Baggott, Director, Employee Services-HR, Unilever (UK)Amit Banker, Partner, Ernst & Young (US)
Mirjam Dreyfuss, Senior Manager, Ernst & Young (US)Debbi Marcus, Manager, Global Equity, Unilever (US)
UnileverUnilever was formed in 1930 from two companies: Margarine Unie and Lever
Brothers.
We are one of the world’s leading suppliers of fast-moving consumer goods.
We issue two types of shares, NV ordinary shares from the Margarine Unie side and PLC ordinary shares from the Lever Brothers side
Our Purpose• To make sustainable living commonplace. • Create a better future every day, with brands and services that help
people feel good, look good and get more out of life.
Our Priorities• First to our consumers – then customers, employees, suppliers and
communities. • When we fulfill our responsibilities to them, we believe shareholders
will be rewarded.
Our Vision• Double the size of the business, while reducing our environmental
footprint and increasing our positive social impact.
A Global Reward Plan for our Global Team
Building and strengthening our Global Leadership Team
Assessed our policies for our International Assignees and Global Leadership Team
A brief history of mobility...1980
• Unilever ran a host-based assignment policy that was widely regarded as quite generous for 35 years
2007• The policy changed to a
more typical home-based, equalised policy (simultaneously outsourcing all IA administration)
2012• After seeking input from
the business and (using innovative crowd-sourcing technology) input from the assignees as well, the policy was changed again
• A host-based approach was re-introduced along with a global pay structure called Euronet to deal with senior leadership pay and a cadre of ‘globally mobile’ employees at lower work levels
How we arrived at the new policy approach• We asked the business what they wanted
• We asked the assignees what they wanted
• We set up a working group to establish the basic rules based on this feedback
• Verified these with the HR Leadership team
• And then set about designing the details
‘Crowd sourcing’ software helped us to focus on the most important issues.
• Tax Compliance and consistent global process• All employees in Euronet are on an even playing field• Nationality removed as the driver for pay• Stronger sense of team spirit• Simplified compensation review
Overall Benefits
Compensation BucketsGlobal Leadership
(Euronet)Global Assignees
(Euronet)
Host Based Assignees(host based compensation
with allowances)
Locals(host based compensation)
All Employees
2nd GA
3rd GA
2nd
3rd
1st IA1st
3 years 3 years 3 years 3 years
Host‐Based
Domestic
Relocate, Repatriate,
Localise or Exit
Timeline
RelocateLocalise orExit
4th
RelocateLocalise orExit
Euronet
End of Assignment Options
If a host-based assignee returns home and goes on assignment at any time during the next three years they will move onto the Euronet policy. If they go on assignment after three years they will go as a host-based assignee.There is no repatriation option when a Global Assignment ends since the link to a ‘home’ base has been cut. However, an employee can relocate permanently to a new location, in which case tUnilever’s Permanent Transfer policy applies.Note: Only long -term assignments are included. Short term assignments are not included.
International Assignments landscape
Euronet Reward Principles• Offers exceptional reward for exceptional performance and
reflects the global, highly-competitive nature of our business• One simple and consistent Reward structure across the Global
Leadership Team – no home country reference points• All payments made net of tax and social security
• a consistent Global Salary Structure referenced in Euros• a single consolidated allowance replacing multiple benefits• a consistent set of core benefits• a level playing field for performance culture incentives
• More flexibility and personal choice.
Key Elements of the EuronetPackage• Euronet Salary• Euronet Allowance• Annual Bonus• Management Co-Investment Plan• Global Share Incentive Plan
Comparison of all assignments on net to net basis which includes share based compensation
Euronet Pay• Most Global Assignees can choose up to two currencies to
be paid in• We fix the exchange rate for the duration of the assignment• Unilever runs a Euronet payroll for pay delivery but
obviously all amounts are reported to host payroll for compliance, etc.
• Where split pay is not allowed they are paid 100% in host and rely on a ‘Home Remittance Subsidy’ for FX protection
Euronet Share ComponentsGlobal Share Incentive Plan (GSIP/GPSP)• GSIP/GPSP award comprising a number of shares worth
between zero and two times a target net value based on a nine box matrix position which represents leadership (what was delivered & how it was delivered)
• GSIP/GPSP share award will vest in the range of zero to two times (plus reinvested dividends) based on Unilever’s performance against targets over the following three years
• GSIP/GPSP shares and reinvested dividends will be delivered net of tax and social security
Euronet Share ComponentsManagement Co-Investment Plan (MCIP)• Directors and VPs have the opportunity to invest from 10%-60%
of their annual bonus in shares• SVPs and above must invest at least 25% and may invest up to
60% of their Euronet Annual Bonus award in Unilever shares• Employees receive matching shares worth up to twice the
number of shares purchased (plus reinvested dividends) based on Unilever’s performance against targets over the following three years
• Matching shares and reinvested dividends will be delivered net of tax and social security.
Tax• Host-based assignees pay local income taxes on all income.
There is no protection against tax increases, etc.– From an equity income perspective a blended tax withholding
rate is provided to Computershare prior to withholding• Euronet assignees pay no tax or social security at all on their
Unilever source income. Unilever ensures that all taxes are paid to each tax jurisdiction where required including any taxes owed in an employee’s home country.– From an equity income perspective no pre-determined
withholding rate needs to be provided to Computershare prior to any tax event. Tax allocations occur after vesting.
• All costs including equity income for Long Term Assignees are charged to the host country
Payroll reporting and withholding process• EY helps manage tax calculation and allocation process on
vestings for all cross border employees • Over 75 countries covered in an automated fashion• Multiple tax policies through generations of changes• Multiple trade currencies and country specific payroll/process
requirements• Recharge of equity cost where permitted• Tax statements for each transaction provided to employees• Ongoing of maintenance of tax rules and tax rates
Questions
Leonie BaggottUnilever
Mirjam DreyfussErnst & Young
Amit BankerErnst & Young
Debbi MarcusUnilever
![· Statement, Soubhik embarked on an account of his encounter with the Income Tax Department.” I originally owed Rs. 20,000 in unpaid taxes with [2] and [3], the 20,000 became](https://img.pdfslide.net/doc/110x75/5f208a7186a573298d451b02/statement-soubhik-embarked-on-an-account-of-his-encounter-with-the-income-tax-departmenta.jpg)
