Unilever 2002 Annual Report Download - page 106

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28 Analysis of net funds/(debt)
million million million million million million
Acquisitions/
disposals Other
1 January Cash (excl. cash & non-cash Currency 31 December
2002 flow overdrafts) changes movements 2002
Cash on call and in hand 1 576 (46) 72 1 602
Overdrafts (400) 95 28 (277)
49
Borrowings due within one year (10 879) 5 649 7 (4 579) 568 (9 234)
Borrowings due after one year (14 221) (3 049) (64) 5 346 1 055 (10 933)
2 600
Current investments 439 189 (1) 700 (101) 1 226
Cash on deposit 286 403 – – (39) 650
592
Net funds/(debt) (23 199) 3 241 (58) 1 467 1 583 (16 966)
Other non-cash changes include profits and losses on disposal and adjustments to realisable value of current investments; exchange gains
and losses on inter-company borrowings and related derivatives; and the reclassification of long-term borrowings falling due within one year
at the balance sheet date.
29 Equity-based compensation plans
As at 31 December 2002, the Group had a number of equity-based compensation plans:
(i) All-Employee Option Plans
Local All-Employee Option Plans have been set up in 16 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 plans permit participation by all permanent employees in the country where the relevant plan applies.
(ii) Executive Option Plans
The Executive Option 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 dependent on
performance of the Group and the individual.
(iii) The Share Matching Plans
If managers invest part of their annual bonus in Unilever shares, the Company will match this with the same number of shares on the
condition that they keep all shares for an agreed number of years and will still be employed by Unilever on the vesting date.
(iv) The TSR Long-Term Incentive Plan
This plan was introduced in 2001 and depending on the TSR ranking (see page 40 and 41) 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 are awarded to a select number of executives for special performance. After the agreed number of years the awards will
vest provided they are still employed by Unilever at that time.
(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 share options in total in respect of Executive Option Plans of more than 5% of its issued ordinary capital, and for all
Plans together, of 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 share option and award plans by purchasing shares in advance and transferring
them, in return for the grant price, to directors and employees as the options are exercised.
Notes to the consolidated accounts 103
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2002
Financial Statements