Unilever 2001 Annual Report Download - page 82

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Unilever Annual Report & Accounts and Form 20-F 2001
NOTES TO THE CONSOLIDATED ACCOUNTS
Unilever Group
>79
Financial Statements
27 Analysis of net funds/(debt)
million million million million million million
Acquisitions/
Disposals Other
1 January Cash (excl. cash & non cash Currency 31 December
2001 Flow overdrafts) changes movements 2001
Cash on call and in hand 1 235 205 136 1 576
Overdrafts (393) (11) 4 (400)
194
Borrowings due within one year (16 282) 9 764 3 (4 074) (290) (10 879)
Borrowings due after one year (13 066) (4 669) (1) 3 874 (359) (14 221)
5 095
Current investments 660 (13) –(208) –439
Cash on deposit 1 378 (1 093) ––1 286
(1 106)
Net funds/(debt) (26 468) 4 183 2 (408) (508) (23 199)
Other non-cash changes include profits and losses on disposal and adjustments to realisable value of current investments; exchange gains
and losses on borrowings; and the reclassification of long-term borrowings falling due within one year at the balance sheet date.
28 Equity-based compensation plans
As at 31 December 2001, the Group had a number of equity-based compensation plans:
(i) All-Employee Option Plans
Local All-Employee Plans have been set up in several countries to enhance employee involvement with Unilever and its performance
by providing a potential financial benefit linked to the Unilever share price. There are no individual performance targets to be met.
The schemes permit participation by all permanent employees in the country where the relevant scheme applies.
(ii) Executive Option Plans
The Executive Plans were introduced in 1985 to reward key employees throughout the world for their contribution to the enhancement
of the Group’s longer-term future and their commitment to the Group over a sustained period. The grant is discretionary, dependent on
performance of the Company and the individual.
(iii) The Share Matching Plans
If executives invest part of their annual bonus in Unilever shares, the Company will match this with the same number of shares on condition
that they keep all shares for an agreed number of years and will still be employed by Unilever on vesting.
(iv) The TSR – Long-Term Incentive Plan
This plan was introduced in 2001 and depending on the TSR ranking (see page 33) of Unilever in comparison with its peer group it will
potentially award top executives on the vesting date three years later with a number of Unilever shares.
(v) The Restricted Share Plan
Restricted shares awarded to a select number of executives for special performance. Awards will vest provided they are still employed by
Unilever three or five years after the award.
(vi) The North American Performance Share Plan
A long-term incentive plan for North American managers awarding Unilever shares if company and personal performance targets are met
over a three-year period.
Unilever will not grant more share options in respect of Executive Plans than 5% of its issued ordinary capital and for all Plans together,
no more than 10% of its issued ordinary capital. The Board does not apportion these limits to each plan separately.
In recent years we have met the obligations under our option plans by purchasing shares in advance and transferring them to directors and
employees as the options are exercised.