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120 Unilever Annual Report & Accounts and Form 20-F 2003
Notes to the consolidated accounts
Unilever Group
29 Equity-based compensation plans continued
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 New York shares of €0.51
Outstanding at 1 January 3 221 014 $52.54 2 736 921 $49.23 2 030 941 $47.29
Granted 706 632 $58.48 755 295 $59.44 840 937 $52.22
Exercised (278 763) $36.15 (242 276) $36.00 (119 965) $36.02
Forfeited (47 619) $63.61 (28 926) $57.52 (14 992) $59.43
Expired(a) –– –– ––
Outstanding at 31 December 3 601 264 $54.83 3 221 014 $52.54 2 736 921 $49.23
Exercisable at 31 December 2 275 533 $53.22 1 888 079 $50.10 1 632 955 $46.29
PLC shares of 1.4p in the form of ADRs(d)
Outstanding at 1 January 16 997 152 $8.06 12 744 844 $7.89 7 491 864 $8.33
Granted 4 671 336 $9.13 4 994 640 $8.42 5 566 904 $7.25
Exercised (600 348) $7.04 (598 300) $7.14 (208 116) $6.86
Forfeited (289 304) $8.92 (144 032) $8.40 (105 808) $8.08
Expired(a) –– –– ––
Outstanding at 31 December 20 778 836 $8.32 16 997 152 $8.06 12 744 844 $7.88
Exercisable at 31 December 12 040 552 $8.15 8 175 172 $8.29 5 415 724 $8.57
(a) Prior to 2003 the number of expired options was immaterial.
(d) 1 ADR is equivalent to 4 PLC shares.
2003 2002 2001
NV option value information(b)
Fair value per option(c)
NV Executive Option Plan €12.43 €18.74 €16.57
PLC Executive Option Plan £8.41 £11.59 £8.94
NA Executive Option Plan $12.42 $16.32 $13.96
Valuation assumptions
Expected option term 6.0 years 6.0 years 6.3 years
Expected volatility 27.5% 27.6% 28.5%
Expected dividend yield 3.2% 2.4% 2.5%
Risk-free interest rate 3.5% 5.0% 4.1%
PLC option value information(b)
Fair value per option(c)
NV Executive Option Plan €2.14 €2.62 €2.01
PLC Executive Option Plan £1.45 £1.62 £1.24
NA Executive Option Plan $2.05 $2.23 $1.86
Valuation assumptions
Expected option term 6.0 years 6.0 years 6.8 years
Expected volatility 27.5% 27.1% 26.0%
Expected dividend yield 2.8% 2.6% 2.9%
Risk-free interest rate 4.0% 5.3% 4.6%
(b) Weighted average of options granted during each period.
(c) Estimated using Black-Scholes option pricing method.