Unilever 2003 Annual Report Download - page 68

Unilever Annual Report & Accounts and Form 20-F 2003 65
Remuneration report – detailed information
Footnotes for table on preceding page:
(1) Grants made under the Executive Plan on 25 March 2003 at an option price of €55.10 (NV shares) and 585p (PLC shares).
(2) Premium grants made under the Executive Plan on 8 May 2003 at an option price of €52.05 (NV shares) and 578.50p (PLC shares).
(3) Grants made under the Netherlands All-Employee Option Plan on 2 June 2003 at an option price of €51.00 (NV shares).
(4) Options expired without value on 8 May 2003. The options were originally granted on 8 May 1998 with a five-year exercise period at an
option price of €69.29 (NV shares) and 667.50p (PLC shares).
(5) Options expired without value on 15 September 2003. The options were originally granted on 15 September 1998 with a five-year exercise
period at an option price of €57.63 (NV shares).
(6) Options exercised on 4 November 2003 at a market price of 508.50p per share. The options were originally granted in 1994 at a price of
253.75p per share.
(7) NV options granted in the form of NV New York shares. PLC options granted in the form of American Depositary Receipts (1 ADR
equivalent to 4 PLC shares).
(8) Grants made under the Executive Plan on 25 March 2003 at an option price of $58.35 (NV New York shares) and $9.14 (PLC shares).
(9) Premium grants made under the Executive Plan on 8 May 2003 at an option price of $59.40 (NV New York shares) and $9.24 (PLC shares).
(10)Grant made in 2003 under the US All-Employee Plan at an option price of $54.11.
(11)Options exercised on 5 May 2003 at a market price of $59.00 per share. The options were originally granted on 10 June 1993 at a price
of $26.81 per share.
(12)Options granted under UK ShareSave Plan on 6 June 2003 at an option price of 577p per share.
The term ’Executive Plan’ refers to options granted under the PLC, NV or NA Executive Option Plans (see page 57).
The closing market prices of ordinary shares at 31 December 2003 were €51.85 (NV shares), 521p (PLC shares), $64.90 (NV New York
shares) and $37.60 (PLC ADRs). During 2003 the highest market prices were €59.95, 628p, $64.90 and $39.49 respectively, and the
lowest market prices were €45.81, 475p, $52.95 and $31.44 respectively.
Directors’ pensions
Directors’ pension values for the year ended 31 December 2003 are set out below. For convenience amounts are shown both in euros
and [in brackets] in pounds sterling:
Increase Transfer value Difference in
Increase in accrued at 31/12/03 of 2002 and 2003
Accrued annual in accrued annual benefit the increase in Transfer value of Transfer value of transfer values
Age at benefit as at annual benefit during 2003 accrued benefit accrued benefit accrued benefit (less individual
31/12/03 31/12/03(1) during 2003(1) (excl. inflation) (excl. inflation)(2) at 31/12/03(2) at 31/12/02(2) contributions)(3)
‘000 ‘000 ‘000 ‘000 ‘000 ‘000 ‘000
A Burgmans 56 €915 €73 €45 €764 €11 613 €9 747 €1 866
[£648] [£50] [£31] [£541] [£8 219] [£6 340] [£1 879]
N W A FitzGerald 58 €1 102 €90 €80 €1 381 €19 624 €18 017 €1 572
[£780] [£62] [£55] [£977] [£13 888] [£11 720] [£2 144]
A C Butler 57 €533 €16 €12 €185 €9 097 €8 809 €271
[£377] [£11] [£8] [£131] [£6 438] [£5 730] [£696]
P J Cescau(4) 55 €717 €54 €32 €549 €9 535 €8 394 €1 141
[£507] [£37] [£22] [£389] [£6 748] [£5 460] [£1 288]
K B Dadiseth 58 €682 €91 €85 €1 512 €12 323 €10 684 €1 617
[£483] [£63] [£59] [£1 070] [£8 721] [£6 950] [£1 756]
A R van Heemstra 57 €527 €52 €36 €593 €7 695 €6 702 €993
[£373] [£36] [£25] [£420] [£5 446] [£4 360] [£1 086]
R H P Markham 57 €620 €67 €61 €1 036 €10 899 €9 746 €1 133
[£439] [£46] [£42] [£733] [£7 713] [£6 340] [£1 359]
C B Strauss 60 €666 €36 €12 €160 €10 073 €11 811 €(1 738)
[£471] [£25] [£8] [£113] [£7 129] [£7 683] [£(554)]
(1) The accrued annual benefits are calculated using the Directors’ service to 31 December 2003 and include all benefits provided from Unilever
pension plans. The NV Directors’ arrangement operates on the basis of a justifiable expectation and does not provide any vested deferred
entitlement. NV Directors leaving before age 55 are only entitled to benefits from other Unilever pension plans. The accrued annual benefits
are calculated on the basis that benefits commence at age 60; in the event the Director leaves service prior to age 60 and payment of the
benefit commences earlier than age 60, the benefits payable would be on a reduced basis. Within last year’s report the NV Directors’
accrued annual benefits were presented on the basis of an immediate but reduced pension. This year the accrued annual benefits for
NV and PLC Directors are presented on the same basis, as described above, therefore for NV Directors the total accrued benefits at
31 December 2002 were actuarially converted to be consistent with the form of the 31 December 2003 accrued annual benefits.
(2) The transfer values for the NV Directors’ arrangement are calculated on the basis used by the Unilever Netherlands pension plan (Progress),
in line with the Netherlands regulations. The transfer values for the PLC Directors’ arrangement are calculated on the basis used by the
Unilever United Kingdom pension plan (UPF), in line with the GN11 guidance note published by the Institute and Faculty of Actuaries in
the United Kingdom.
(3) During 2003 the UK based Directors paid compulsory contributions equivalent to 2% of their pensionable salary. The Netherlands and US
based Directors made no compulsory contributions in that year, in line with the then current practice for all employees in those countries.
(4) Reached age 55 during the year, therefore the increase in total accrued benefits during 2003 was calculated using the 31 December 2002
total accrued benefits, actuarially converted to be consistent with the form of the 31 December 2003 accrued annual benefit.