Unilever 2006 Annual Report Download - page 121

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118 Unilever Annual Report and Accounts 2006
Financial Statements (continued)
29 Share-based compensation plans (continued)
(i) All-Employee Share Option Plans
Unilever has All-Employee Share Option Plans in 15 countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
the Netherlands, Portugal, Spain, Sweden and Switzerland, and with a share save element in South Africa and the United Kingdom.
The vesting periods range between three and five years (Netherlands nil) and the maximum term is five years.
A summary of the status of the All-Employee Plans as at 31 December 2006, 2005 and 2004 and changes during the years ended on these
dates is presented below:
2006 2005 2004
Weighted Weighted Weighted
average average average
Number of exercise Number of exercise Number of exercise
options price options price options price
Outstanding at 1 January 20 467 554 €19.11 22 155 623 €18.77 21 564 274 €18.71
Granted 4356 278 €17.65 4884 012 €17.62 4 830 401 €17.79
Exercised (1 921 936) €17.32 (3077 008) €15.59 (563 445) €14.21
Forfeited (1 683 941) €19.18 (1 967 127) €18.91 (2 150 074) €18.22
Expired (3 224 609) €21.35 (1 527 946) €17.93 (1 525 533) €19.12
Outstanding at 31 December 17 993 346 €18.54 20 467 554 €19.02 22 155 623 €18.64
Exercisable at 31 December 6484 654 €19.66 6819 376 €20.88 5 988 657 €19.71
The weighted average market price of the shares at the time of exercise was €19.92 (2005: €18.34; 2004: €17.12). As at 1 January 2006 there
were 13 648 178 non-vested options at a weighted average fair value of €3.59. As at 31 December 2006 there were 11 508 692 non-vested
options at a weighted average fair value of €3.30. During 2006 there were 5 132 333 options vested at a weighted average fair value of €3.83.
2006 2005 2004
Option value information
Fair value per option €3.10 €3.01 €3.18
Valuation assumptions:
Expected option term 3.5 years 3.5 years 3.4 years
Expected volatility 27.5% 27.5% 27.5%
Expected dividend yield 3.8% 3.6% 3.3%
Risk-free interest rate 3.8% 2.9% 3.5%
The exercise prices and remaining life of the All-Employee Option Plans as at 31 December 2006 are as follows:
Options outstanding Options exercisable
Number Weighted Number
Range of outstanding at average remaining Weighted average exercisable at Weighted average
exercise prices 31 December 2006 contractual life exercise price 31 December 2006 exercise price
€17.00 – €23.34 17 993 346 3 years €18.54 6 484 654 €19.66
Notes to the consolidated accounts Unilever Group