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Unilever Annual Report & Accounts and Form 20-F 2003 119
Notes to the consolidated accounts
Unilever Group
29 Equity-based compensation plans continued
The exercise prices and remaining life of the All-Employee Option Plans as at 31 December 2003 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 2003 life exercise price 2003 exercise price
NV shares of €0.51 €51.00–€57.63 1 848 480 3 years €51.66 461 541 €52.11
€63.65–€70.00 2 632 193 3 years €66.27 222 161 €67.90
PLC shares of 1.4p £3.71–£4.25 4 587 832 2 years £4.24 50 104 £3.71
£5.14–£6.20 12 483 223 3 years £5.65 1 928 361 £5.94
NV New York shares of €0.51 $55.44 146 760 1 year $55.44 – –
(ii) Executive Option Plans
The Executive Option Plans are made up of the following plans, under which options 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 the shares 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 is covered by the North American 2002 Omnibus Equity Compensation Plan and 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.
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, but the fair value costs (2003: €3 million; 2002: €2 million; 2001: € nil) are
included in the costs of Executive Option Plans on page 117.
A summary of the status of the Executive Option Plans as at 31 December 2003, 2002 and 2001 and changes during the years ended on these
dates is presented below:
2003 2002 2001
Weighted Weighted Weighted
Number of average Number of average Number of average
options exercise price options exercise price options exercise price
NV shares of €0.51
Outstanding at 1 January 11 139 397 €61.71 8 198 049 €58.95 4 835 834 €57.68
Granted 3 508 997 €55.03 3 658 548 €66.84 4 017 741 €58.26
Exercised (35 315) €48.64 (373 219) €51.37 (372 052) €33.83
Forfeited (646 555) €61.27 (343 981) €62.73 (283 474) €60.40
Expired(a) (433 046) €69.18 –– ––
Outstanding at 31 December 13 533 478 €59.80 11 139 397 €61.71 8 198 049 €58.95
Exercisable at 31 December 4 546 269 €58.26 4 795 216 €59.84 4 788 521 €58.75
PLC shares of 1.4p
Outstanding at 1 January 75 140 770 £5.28 57 255 712 £4.96 34 455 159 £4.89
Granted 22 848 640 £5.85 23 811 993 £5.83 26 126 694 £4.97
Exercised (1 570 256) £4.05 (3 931 699) £3.96 (1 649 129) £3.42
Forfeited (3 749 776) £5.53 (1 995 236) £5.48 (1 677 012) £5.11
Expired(a) (2 908 993) £6.61 –– ––
Outstanding at 31 December 89 760 385 £5.39 75 140 770 £5.28 57 255 712 £4.96
Exercisable at 31 December 30 704 526 £4.87 33 370 192 £5.07 34 846 599 £4.90