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83
Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements
Notes to the consolidated accounts
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2000
34 Equity based compensation plans continued
The NV Executive Option Plan
The NV Executive Option Plan provides for the granting of options to purchase shares of Unilever N.V. and, from 1997 onwards, also shares
of Unilever PLC to key employees of the Group. Under the NV Executive Option Plan, options have been granted on a discretionary basis to
acquire shares at market price on the day options w ere granted. These options become exercisable immediately from the date of grant and
have a maximum term of five years for the grants made up to 1998 and of ten years for subsequent grants.
A summary of the status of the NV Executive Option Plan as at 31 December 2000, 1999 and 1998 and changes during the years ended on
these dates is presented below :
2000 1999 1998
Weighted Weighted Weighted
Number average Number average Number average
of shares price of shares price of shares price
NV Options
Outstanding at 1 January 2 778 657 51.87 1 993 914 40.62 1 957 540 28.57
Granted 1 108 375 54.77 1 133 865 63.50 546 156 69.21
Exercised (595 674) 28.42 (343 652) 24.68 (490 244) 23.21
Forfeited (63 652) 61.62 (5 470) 66.59 (19 538) 56.98
Outstanding at 31 December 3 227 706 57.01 2 778 657 51.87 1 993 914 40.62
Options exercisable at 31 December 3 227 706 57.01 2 778 657 51.87 1 993 914 40.62
PLC Options
Outstanding at 1 January 13 093 020 £5.59 5 791 917 £5.64 2 296 184 £4.07
Granted 7 217 650 £4.37 7 394 775 £5.55 3 566 477 £6.67
Exercised (476 784) £4.07 (58 352) £4.07 (1 320) £4.07
Forfeited (422 000) £5.55 (35 320) £6.15 (69 424) £6.23
Outstanding at 31 December 19 411 886 £5.18 13 093 020 £5.59 5 791 917 £5.64
Options exercisable at 31 December 19 411 886 £5.18 13 093 020 £5.59 5 791 917 £5.64
2000 1999 1998
NV Option value information (a)
Fair value per option (b) 10.83 12.09 12.91
Valuation assumptions
Expected option term 7 years 5 years 4 years
Expected volatility 23.72% 19.68% 18.93%
Expected dividend yield 4.38% 1.56% 1.38%
Risk-free interest rate 5.13% 3.46% 4.46%
PLC Option value information (a)
Fair value per option (b) 1.82 1.66 2.34
Valuation assumptions
Expected option term 7 years 5 years 5 years
Expected volatility 23.40% 22.82% 17.70%
Expected dividend yield 3.30% 2.84% 1.50%
Risk-free interest rate 5.74% 4.58% 6.11%
(a) Weighted average of options granted during each period.
(b) Estimated using Black Scholes option pricing method.