Unilever 2005 Annual Report Download - page 142

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Financial Statements
Unilever Annual Report and Accounts 2005 139
Notes to the consolidated accounts
Unilever Group
31 Share-based compensation plans (continued)
(v) TSR Long-Term Incentive Plan
Under this plan, introduced in 2001, grants are made to Executive Directors and some senior executives. The level of share award which will
vest three years later will vary in accordance with the Total Shareholder Return in comparison with a peer group (see description on page 25). If
the ranking is below the median, the share award will lapse; the higher the ranking above the median, the higher the share award. The amount
to be paid to the company by participants to obtain the shares at vesting is zero.
A summary of the status of the TSR Long-Term Incentive Plan as at 31 December 2005 and 2004 and changes during the year ended on these
dates is presented below:
2005 2004
Number of Number of
shares shares
NV shares of €0.51
Outstanding at 1 January 360 829 327 345
Awarded 112 442 120 526
Vested(j) –(71 564)
Forfeited (3 663) (15 478)
Expired(k) (112 833) –
Outstanding at 31 December 356 775 360 829
Exercisable at 31 December ––
PLC shares of 1.4p
Outstanding at 1 January 2 440 310 2 249 384
Awarded 782 600 829 159
Vested(j) –(533 481)
Forfeited (24 344) (104 752)
Expired(k) (798 284) –
Outstanding at 31 December 2 400 282 2 440 310
Exercisable at 31 December ––
(j) 2001 award vested 100% as ranking was 6th.
(k) 2002 award expired (zero vesting) as ranking was 13th.
2005 2004
NV share award value information
Fair value per share award(l) €40.56 €41.81
PLC share award value information
Fair value per share award(l) £4.04 £4.02
(l) Estimated using option pricing models taking account of peer group TSR volatilities and correlations.