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124 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
shares price shares price shares price
PLC shares of 1.4p in the form of ADRs(d)
Outstanding at 1 January 9 130 532 $0.00 4 665 064 $0.00 – –
Awarded 4 191 296 $0.00 4 769 348 $0.00 4 665 064 $0.00
Exercised – – – – – –
Forfeited (118 912) $0.00 (303 880) $0.00 – –
Outstanding at 31 December 13 202 916 $0.00 9 130 532 $0.00 4 665 064 $0.00
Exercisable at 31 December – – – – – –
(d) 1 ADR is equivalent to 4 PLC shares.
2003 2002 2001
NV share award value information(b)
Fair value per share award $58.35 $59.00 $59.65
PLC share award value information(b)
Fair value per share award $9.14 $8.35 $8.59
(b) Weighted average of share awards granted during each period.
Additional information
At 31 December 2003, there were options outstanding to purchase 19 625 369 (2002: 16 693 951) €0.51 ordinary NV shares, and
96 512 423 (2002: 79 141 530) 1.4p ordinary PLC shares in respect of equity-based compensation plans of NV and its subsidiaries and the
North American plans, and 4 816 994 (2002: 3 846 623) €0.51 ordinary NV shares and 50 494 450 (2002: 45 785 840) 1.4p ordinary
PLC shares in respect of equity-based compensation plans of PLC and its subsidiaries.
To satisfy the options granted, certain NV group companies hold 22 163 785 (2002: 17 711 169) certificates or depositary receipts of ordinary
shares of NV and 84 450 131 (2002: 69 162 782) of PLC and a forward equity contract to buy 10 000 000 PLC shares in 2006, and trusts in
Jersey and the United Kingdom hold 47 085 636 (2002: 43 176 360) PLC shares. The book value of the shares held by the trusts, together
with their borrowings, is taken up in the entity accounts of PLC, as required by United Kingdom Urgent Issues Task Force Abstract 38 (UITF 38).
The trustees of these trusts have agreed, until further notice, to waive dividends on these shares, save for the nominal sum of 0.01p per 1.4p
ordinary share. Shares acquired during 2003 represent 0.8% of the Group’s called up capital. The balance at year end is 4.2% (2002: 3.4%).
The book value of €2 294 million (2002: €2 003 million) of all shares held in respect of equity-based compensation plans for both NV and PLC
is eliminated on consolidation by deduction from other reserves (see note 23 on page 111). Their market value at 31 December 2003 was
€2 117 million (2002: €2 058 million).
At 31 December 2003 the exercise price of 17 072 651 (2002: 11 163 031) NV options and of 79 751 021 (2002: 13 156 190) PLC options
was above the market price of the shares.
Shares held to satisfy options are accounted for in accordance with Netherlands law and United Kingdom UITF 37 and UITF 38. All differences
between the purchase price of the shares held to satisfy options granted and the proceeds received for the shares, whether on exercise or
lapse, are charged to reserves. In 2003 this includes €8 million (2002: €8 million) for shares held to meet options expiring in the short term
which are priced above market value. The basis of the charge to operating profit for the economic value of options granted is discussed on
page 117.
Obligations over the following number of shares were granted, exercised, forfeited or expired between 31 December 2003 and
28 February 2004. In this period we have also, in line with prior years practice, purchased 437 371 NV New York shares and 2 795 732 PLC
shares in the form of ADRs to satisfy awards under the North American PSP.
Exercised,
Granted forfeited or expired
Shares Shares Shares Shares
of 1.4p(i) of €0.51(ii) of 1.4p(i) of €0.51(ii)
All-Employee Option Plans – – 428 338 37 193
Executive Option Plans – – 2 026 858 533 842
Share Matching Plans – – 3 149 450
TSR Long-Term Incentive Plan ––––
Restricted Share Plan ––––
North American Performance Share Plan ––––
(i) When under a North American Plan, in the form of PLC ADRs.
(ii) When under a North American Plan, in the form of NV New York shares.