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Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements
88
Notes to the consolidated accounts
Unilever Group
88
Unilever Annual Report & Accounts and Form 20-F 2000
34 Equity based compensation plans continued
The NA Employee Purchase Plan
The NA Employee Purchase Plan provides for the granting of options to purchase a maximum of 10 000 000 shares of Unilever N.V. of the
New York Registry.
The second offering under the NA Employee Purchase Plan was made in 1997, and was limited to 2 000 000 shares. Under the terms of
the second offering, eligible employees could elect to accept the option to purchase any number of whole shares, being not less than
40 or more than 416, by payroll deductions of up to 10% of annual base compensation over a tw o-year period in equal instalments
beginning 1 November 1997 and ending 29 October 1999. At the end of the second offering, eligible employees exercised their options to
purchase 631 493 NV shares at an option price of US$47.83, which represents a 10% discount to the market value on the grant date. This
discount of US$4.4 million w as amortised over the 24-month vesting period of the plan.
The third offering, also limited to 2 000 000 shares, w as held in 1999. Eligible employees can purchase betw een 30 and 381 shares
by means of a maximum payroll deduction of 10% from January 2000 to December 2001. As at 31 December 1999 this represented
557 062 NV shares. The option price of US$52.43, 10% below the market value on the grant date, leads to a discount of US$3.2 million
being amortised over the 24-month vesting period.
A summary of the status of the NA Employee Purchase Plan as at 31 December 2000, 1999 and 1998 and the changes during these years
is presented below:
2000 1999 1998
Weighted Weighted Weighted
Number average Number average Number average
of shares price of shares price of shares price
Outstanding at 1 January 633 913 US$52.43 785 756 US$47.83 912 752 US$47.83
Granted — — 633 913 US$52.43 — —
Exercised — — (701 897) US$47.83 — —
Forfeited (163 233) US$52.43 (83 859) US$47.83 (126 996) US$47.83
Outstanding at 31 December 470 680 US$52.43 633 913 US$52.43 785 756 US$47.83
Options exercisable at 31 December — — — — — —
2000 1999 1998
Option value information (a)
Fair value per option (b) — US$14.80 —
Valuation assumptions
Expected option term — 2 years —
Expected volatility — 34.18% —
Expected dividend yield — 1.23% —
Risk-free interest rate — 3.66% —
(a) Weighted average of options granted during each period.
(b) Estimated using Black Scholes option pricing method.
The follow ing table summarises information about fixed price stock options outstanding at 31 December 2000:
Options Outstanding Options Exercisable
Number Weighted Number
outstanding at average Weighted exercisable at Weighted
Range of 31 December remaining average 31 December average
exercise prices 2000 contractual life exercise price 2000 exercise price
US$52.43 470 680 10 months US$52.43 — —