Unilever 2001 Annual Report Download - page 83

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28 Equity-based compensation plans continued
The Group applies accounting policies consistent with APB Opinion 25 and related interpretations in accounting for these plans.
Accordingly, the Group has recognised the following compensation costs, 46 million in 2001, 6 million in 2000 and 13 million in 1999.
Had the Group accounted for options under the requirement of SFAS 123, the impact on reported results would have been as follows:
million million million
2001 2000 1999
Actual compensation costs recognised 46 613
Pro forma compensation cost under SFAS 123 106 57 56
Actual net profit 1 838 1 105 2 771
Pro forma net profit under SFAS 123 1 778 1 054 2 739
Euros per 0.51 Euro cents per 1.4p
2001 2000 1999 2001 2000 1999
Actual earnings per share 1.82 1.07 2.63 27.27 16.08 39.48
Pro forma earnings per share 1.76 1.02 2.60 26.36 15.32 39.04
Actual diluted earnings per share 1.77 1.05 2.57 26.54 15.69 38.50
Pro forma diluted earnings per share 1.71 1.00 2.54 25.65 14.94 38.06
The remaining disclosures required by SFAS 123, including a description of the method and significant assumptions used to estimate the
fair values of options and the weighted-average information, are given below for each type of plan, on a combined basis.
(i) All-Employee Option Plans
Unilever has All-Employee Plans in 15 countries, which can be grouped together as follows:
(a) Plans which follow a standard framework: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Portugal, Spain,
Sweden and Switzerland.
(b) Other plans: North America, South Africa and United Kingdom.
Group (a):
The standard framework for these countries means, in principle, an annual grant of options over NV shares, at the same grant date,
exercise price (the market price on the grant date) and grant size (including part-time employees pro rata) and with the same eligibility
criteria (all permanent employees in a country). There are no vesting conditions other than being continuously employed by a Group
company until the vesting date.
Group (b):
The UK and South Africa plans annually offer options over PLC shares, combined with a compulsory (UK) or optional (South Africa) savings
plan. The exercise price is the market price at date of grant, except that prior to 2000 the exercise price of the UK plan was set at either
80% or 90% of the market price with the discount being amortised to remuneration cost over the vesting period.
The North American plan is a biannual share purchase offering, with a compulsory savings plan, under which up to 10% of the salary of
eligible employees is withheld. After two years employees can use the savings to buy NV New York shares at a discount of 10%. This
discount is amortised to remuneration cost over the two-year vesting period. The maximum number of shares made available under any
offering is two million.
The table below summarises the main country-specific differences between the plans:
Maximum term Vesting period
Country (year of introduction) Years Years Exercise period Remarks
Austria (2001) 5 3 24 months
Belgium (2001) 5 4 12 months
Denmark (2001) 5 3 24 months
Finland (2001) 5 3 24 months on 3rd, 4th or 5th anniversary
France (2000) 5.5 5 6 months
Germany (2000) 5 3 24 months
Italy (2001) 5 3 24 months
Netherlands (1995) 5 5 1 day on 3rd or 5th anniversary
Portugal (2001) 3.5 3 6 months
Spain (2001) 5 3 24 months
Sweden (2001) 5 5 1 day partly convertible bonds
Switzerland (2001) 5 3 24 months
UK (1985) 5.5 5 6 months sharesave plan
South Africa (2001) 3.5 3 6 months optional sharesave plan
North America (1995) 2 2 1 day purchase plan
Unilever Annual Report & Accounts and Form 20-F 2001
NOTES TO THE CONSOLIDATED ACCOUNTS
Unilever Group
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