Unilever 2007 Annual Report Download - page 56

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54 Unilever Annual Report and Accounts 2007
Report of the Directors continued
Comments on long-term incentive arrangements
• Global Share Incentive Plan
The first award was made in 2007 with a performance period 1 January 2007 to 31 December 2009. Vesting will be in May 2010
(three years after award)
• Global Performance Share Plan
The performance period for the first awards made under the plan ended on 31 December 2007. Vesting will be in May 2008 (three
years after award).
• TSR Plan
In 2007 the conditional shares awarded in 2004 lapsed. Vesting was based on the TSR performance of Unilever (when ranked against
its defined peer group with competitors) over the three-year performance period which ended 31 December 2006. For this period,
Unilever ranked 13th in its peer group and therefore no vesting occurred for this award and the shares lapsed in March 2007.
• Share Matching Plan
In 2007 the matching shares originally granted in 2004 on a conditional basis vested, subject to fulfilment of the retention
conditions.
• Executive Share Options
The grants of executive share options made in 2004 became exercisable as from 2007. As the 2004 grant was based on Unilever’s
EPS performance, the options at vesting were subject to no further conditions.
Executive Directors’ Global Share Incentive Plan
The Global Share Incentive Plan was approved by shareholders at the 2007 AGMs.
The following conditional shares were granted during 2007 and outstanding at 31 December 2007 under the Global Share
Incentive Plan:
Balance of
Conditional grant made 22 May 2007 conditional shares at
(Performance period 1 January 2007 to 31 December 2009)(a) 31 December 2007
Share type No. of shares(a) Price at award No. of shares
Patrick Cescau NV 40 505 €22.20 40 505
PLC 40 505 1 582.00p 40 505
Kees van der Graaf NV 20 550 €22.20 20 550
PLC 20 550 1 582.00p 20 550
Ralph Kugler NV 22 145 €22.20 22 145
PLC 22 145 1 582.00p 22 145
Rudy Markham(b) NV––
PLC––
(a) Each award of performance shares is conditional and vests subject to certain conditions three years after the date of the award.
(b) Was not awarded under this new Scheme as he stepped down as a Director at the May 2007 AGMs.
Executive Directors’ Global Performance Share Plan
The following conditional shares were outstanding from grants made in 2005 and 2006.
No new awards from 2007 onwards will be made under this Plan as a new plan was approved by shareholders at the 2007 AGMs and
as from 2007 LTI awards will be made only under the new plan.
Balance of Balance of
conditional shares at conditional shares at
1 January 2007 31 December 2007
Share type No. of shares(a) No. of shares(a)
Patrick Cescau NV 18 000 18 000
PLC 18 000 18 000
Kees van der Graaf NV 12 000 12 000
PLC 12 150 12 150
Ralph Kugler NV 12 000 12 000
PLC 12 150 12 150
Rudy Markham NV 12 000 12 000(b)
PLC 12 150 12 150(b)
(a) Each award of performance shares is conditional and vests subject to performance conditions three years after the date of the award.
(b) Balance is at May 2007 when he stepped down as an Executive Director.
Report of the Remuneration Committee continued