Unilever 2008 Annual Report Download - page 137

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Notes to the consolidated accounts Unilever Group
134 Unilever Annual Report and Accounts 2008
Financial statements
29 Share-based compensation plans (continued)
Additional information
At 31 December 2008, there were options outstanding to purchase 53 373 170 (2007: 61 579 485) ordinary shares in NV or PLC in respect
of share-based compensation plans of NV and its subsidiaries and the North American plans, and 16 807 546 (2007: 18 296 234) ordinary
shares in NV or PLC in respect of share-based compensation plans of PLC and its subsidiaries.
To satisfy the options granted, certain NV group companies hold 58 100 378 (2007: 68 011 392) ordinary shares of NV or PLC, and trusts in
Jersey and the United Kingdom hold 9 450 493 (2007: 10 920 385) PLC shares. 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 31⁄9p ordinary share. Shares acquired for this purpose during 2008
represented less than 0.1% of the Group’s called up capital. The balance of shares held in connection with share plans at 31 December 2008
represented 2.2% (2007: 2.6%) of the Group’s called up capital.
The book value of €1 191 million (2007: €1 305 million) of all shares held in respect of share-based compensation plans for both NV and PLC
is eliminated on consolidation by deduction from other reserves (see note 23 on page 123). Their market value at 31 December 2008 was
€1 134 million (2007: €2 008 million).
At 31 December 2008 the exercise price of 27 102 133 (2007: nil) NV and PLC options were above the market price of the shares.
Shares held to satisfy options are accounted for in accordance with IAS 32 and SIC 12. 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 2008 this
includes €6 million (2007: € nil) 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 133.
Between 31 December 2008 and 27 February 2009, no grants were made and 161 563 shares were forfeited related to the performance share
plans.