Unilever 2002 Annual Report Download - page 109

106 Notes to the consolidated accounts
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2002
29 Equity-based compensation plans continued
The exercise prices and remaining life of the All-Employee Option Plans as at 31 December 2002 are as follows:
Options outstanding Options exercisable
Weighted
Number average Number
outstanding at remaining Weighted exercisable at Weighted
Range of 31 December contractual average 31 December average
exercise prices 2002 life exercise price 2002 exercise price
NV shares of 0.51 53.05 - 57.63 897 413 2 years 53.77 – –
63.65 - 70.00 3 129 017 4 years 66.28 231 979 67.90
PLC shares of 1.4p £3.71 - £4.25 5 832 050 3 years £4.21 430 696 £3.71
£5.14 - £6.20 12 173 542 3 years £5.63 – –
NV New York shares of 0.51 $54.11 149 431 1 year $54.11 – –
(ii) Executive Option Plans
The Executive Option Plans are made up of the following plans, which are granted to key employees of the Group on a discretionary basis:
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, at a price not lower than the market price on the day the options were granted. Options granted until March 2001
become exercisable immediately from the date of grant but cannot be sold within three years; options granted from November 2001
become exercisable after three years. The options have a maximum term of five years for the grants made up to 1998 and of ten years for
subsequent grants.
The PLC Executive Option Plan
The PLC Executive Option Plan provides for the granting of options to purchase shares of Unilever PLC and from 1997 onwards, also shares
of Unilever N.V., at a price not lower than the market price on the day the options were granted. These options become exercisable after a
three-year period from the date of grant and have a maximum term of ten years.
The NA Executive Option Plan
The NA Executive Option Plan provides for the granting of options to purchase a maximum of 40.5 million shares in Unilever N.V. of the
New York Registry, and 262.0 million shares of Unilever PLC, at a price not lower than the market value on the day the options are granted.
These options become exercisable over a three-year period from the date of grant and have a maximum term of ten years.
In addition, managers working in India can participate in an Executive Option Plan relating to Hindustan Lever Limited’s shares. As these
are neither NV nor PLC shares, no figures for this plan are disclosed in this note.
A summary of the status of the Executive Option Plans as at 31 December 2002, 2001 and 2000 and changes during the years ended on
these dates is presented below:
2002 2001 2000
Weighted Weighted Weighted
Number of average Number of average Number of average
shares price shares price shares price
NV shares of 0.51
Outstanding at 1 January 8 198 049 58.95 4 835 834 57.68 3 856 658 54.49
Granted 3 658 548 66.84 4 017 741 58.26 1 659 616 54.56
Exercised (373 219) 51.37 (372 052) 33.83 (615 538) 28.88
Forfeited/Expired (a) (343 981) 62.73 (283 474) 60.40 (64 902) 61.73
Outstanding at 31 December 11 139 397 61.71 8 198 049 58.95 4 835 834 57.68
Exercisable at 31 December 4 795 216 59.84 4 788 521 58.75 3 418 554 56.22
PLC shares of 1.4p
Outstanding at 1 January 57 255 712 £4.96 34 455 159 £4.89 26 221 302 £4.98
Granted 23 811 993 £5.83 26 126 694 £4.97 10 793 301 £4.35
Exercised (3 931 699) £3.96 (1 649 129) £3.42 (2 129 344) £3.25
Forfeited/Expired (a) (1 995 236) £5.48 (1 677 012) £5.11 (430 100) £5.56
Outstanding at 31 December 75 140 770 £5.28 57 255 712 £4.96 34 455 159 £4.89
Exercisable at 31 December 33 370 192 £5.07 34 846 599 £4.90 25 183 453 £4.72