Unilever 2002 Annual Report Download - page 114

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Financial Statements
Notes to the consolidated accounts 111
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2002
29 Equity-based compensation plans continued
2002 2001
Weighted Weighted
Number of average Number of average
shares price shares price
PLC shares of 1.4p in the form of ADRs (d)
Outstanding at 1 January 4 665 064 $0.00 ––
Awarded 4 769 348 $0.00 4 665 064 $0.00
Exercised ––––
Forfeited/Expired (a) (303 880) $0.00 ––
Outstanding at 31 December 9 130 532 $0.00 4 665 064 $0.00
Exercisable at 31 December ––––
(a) The number of expired share awards is immaterial. (d) 1 ADR is equivalent to 4 PLC shares.
2002 2001
NV share award value information (b)
Fair value per share award $59.00 $59.65
PLC share award value information (b)
Fair value per share award $8.35 $8.59
Actual compensation costs recognised (million) 55 32
(b) Weighted average of share awards granted during each period.
Employee share option plans: additional information
At 31 December 2002, there were options outstanding to purchase 16 693 951 (2001: 12 446 685) 0.51 ordinary NV shares, and
79 141 530 (2001: 56 763 080) 1.4p ordinary PLC shares in respect of equity-based compensation plans of NV and its subsidiaries and
the North American plans, and 3 846 623 (2001: 2 782 756) 0.51 ordinary NV shares and 45 785 840 (2001: 44 038 928) 1.4p ordinary
PLC shares in respect of equity-based compensation plans of PLC and its subsidiaries.
To satisfy the options granted, certain NV group companies hold 17 711 169 (2001: 13 679 007) certificates or depositary receipts of ordinary
shares of NV and 69 162 782 (2001: 43 038 640) of PLC and a forward equity contract to buy 10 000 000 PLC shares in 2006, and trusts in
Jersey and the United Kingdom hold 43 176 360 (2001: 41 531 145) PLC shares. The book value of the shares held by the trusts, together
with their borrowings, is taken up in the entity accounts of PLC, as required by United Kingdom UITF Abstract 13. The trustees of these
trusts have agreed, until further notice, to waive dividends on these shares, save for the nominal sum of 0.01p per 1.4p ordinary share.
Shares acquired during 2002 represent 1.0% of the Group’s called-up capital. The balance at year end is 3.4% (2001: 2.6%).
The book value of 1 952 million (2001: 1 480 million) of all shares held in respect of equity-based compensation plans for both NV and
PLC is eliminated on consolidation by deduction from other reserves (see note 23 on page 98). Their market value at 31 December 2002
was 2 058 million (2001: 1 681 million).
At 31 December 2002 the exercise price of 11 163 031 (2001: 1 314 187) NV options and of 13 156 190 (2001: 11 382 978) PLC options
was above the market price of the shares.
Shares held to satisfy options are accounted for in accordance with Netherlands law. Any difference between the market value of the shares
at the grant date and the exercise price of the related options is charged to the profit and loss account over the vesting period. In
accordance with Netherlands law, all other differences between the purchase price of the shares held to satisfy options granted and the
exercise price of those options, or sale proceeds in the event that options lapse, are charged to other reserves. Urgent Issues Task Force
Abstract 17 in the United Kingdom would require differences between the purchase price of the shares held and the exercise price or sale
proceeds to be charged to the profit and loss account. For 2002 this charge would have been 23 million (2001: 13 million). In addition,
a further 8 million would have been recognised as an impairment charge for shares held to meet options expiring in the short term which
are priced above market value.
Obligations over the following number of shares were granted, exercised, forfeited or expired between 31 December 2002 and
28 February 2003.
Granted Exercised, forfeited or expired
Shares of 1.4p(i) Shares of 0.51(ii) Shares of 1.4p(i) Shares of 0.51(ii)
All-Employee Option Plans – – 437 933 88 271
Executive Option Plans – – 794 497 115 782
Share Matching Plans – – 4 424 624
TSR Long-Term Incentive Plan – – – –
Restricted Share Plan 8 640 1 200 623 164 83 487
North American Performance Share Plan – – 44 400 5 950
(i) When under a North American Plan, in the form of PLC ADRs.
(ii) When under a North American Plan, in the form of NV New York shares.