Report & accounts 2002 in full - Unilever

More documents

Recommendations

Info

29 Equity-based compensation plans continued Unilever Annual Report & Accounts and Form 20-F 2002 Notes to the consolidated accounts 105 Unilever Group A summary of the status of the All-Employee Plans as at 31 December 2002, 2001 and 2000 and changes during the years ended on these dates is presented below: 2002 2001 2000 Weighted Weighted Weighted Number of average Number of average Number of average shares price shares price shares price NV shares of €0.51 Outstanding at 1 January 3 109 260 €60.56 1 634 437 €54.41 690 838 €54.38 Granted 1 589 107 €67.90 1 853 007 €64.65 1 204 863 €53.05 Exercised (322 625) €58.72 (225 614) €51.85 (125 707) €40.72 Forfeited/Expired (a) (349 312) €63.24 (152 570) €57.10 (135 557) €54.94 Outstanding at 31 December 4 026 430 €63.38 3 109 260 €60.56 1 634 437 €54.41 Exercisable at 31 December 231 979 €67.90 42 412 €42.99 94 861 €37.58 PLC shares of 1.4p Outstanding at 1 January 22 002 314 £4.61 26 512 577 £4.14 30 777 318 £4.00 Granted 4 122 000 £6.06 4 411 833 £5.29 7 960 043 £4.25 Exercised (5 771 480) £3.78 (5 756 768) £2.94 (5 717 614) £2.74 Forfeited/Expired (a) (2 347 242) £4.90 (3 165 328) £4.62 (6 507 170) £4.84 Outstanding at 31 December 18 005 592 £5.17 22 002 314 £4.61 26 512 577 £4.14 Exercisable at 31 December 430 696 £3.71 250 760 £2.78 192 156 £2.68 NV New York shares of €0.51 Outstanding at 1 January – – 470 680 $52.43 633 913 $52.43 Granted 149 431 $54.11 – – – – Exercised – – (255 208) $52.43 – – Forfeited/Expired (a) – – (215 472) $52.43 (163 233) $52.43 Outstanding at 31 December 149 431 $54.11 – – 470 680 $52.43 Exercisable at 31 December – – – – – – (a) The number of expired options is immaterial. 2002 2001 2000 NV option value information (b) Fair value per option (c) €14.66 €15.13 €10.18 Valuation assumptions Expected option term 3.8 years 3.5 years 4.0 years Expected volatility 26.8% 29.3% 28.6% Expected dividend yield 2.4% 2.2% 4.5% Risk-free interest rate 4.5% 4.5% 4.9% PLC option value information (b) Fair value per option (c) £1.57 £1.31 £1.05 Valuation assumptions Expected option term 4.7 years 4.7 years 5.0 years Expected volatility 28.5% 28.1% 25.6% Expected dividend yield 2.5% 2.8% 3.3% Risk-free interest rate 5.2% 5.4% 5.7% NV New York shares option value information (b) Fair value per option (c) $8.57 – – Valuation assumptions Expected option term 1 year – – Expected volatility 25.2% – – Expected dividend yield 2.5% – – Risk-free interest rate 1.2% – – Actual compensation costs recognised (€ million) 2 4 4 (b) Weighted average of options granted during each period. (c) Estimated using Black Scholes option pricing method. Financial Statements
106 Notes to the consolidated accounts Unilever Group 29 Equity-based compensation plans continued The exercise prices and remaining life of the All-Employee Option Plans as at 31 December 2002 are as follows: Unilever Annual Report & Accounts and Form 20-F 2002 Options outstanding Options exercisable Weighted Number average Number outstanding at remaining Weighted exercisable at Weighted Range of 31 December contractual average 31 December average exercise prices 2002 life exercise price 2002 exercise price NV shares of €0.51 €53.05 - €57.63 897 413 2 years €53.77 – – €63.65 - €70.00 3 129 017 4 years €66.28 231 979 €67.90 PLC shares of 1.4p £3.71 - £4.25 5 832 050 3 years £4.21 430 696 £3.71 £5.14 - £6.20 12 173 542 3 years £5.63 – – NV New York shares of €0.51 $54.11 149 431 1 year $54.11 – – (ii) Executive Option Plans The Executive Option Plans are made up of the following plans, which are granted to key employees of the Group on a discretionary basis: The NV Executive Option Plan The NV Executive Option Plan provides for the granting of options to purchase shares of Unilever N.V. and, from 1997 onwards, also shares of Unilever PLC, at a price not lower than the market price on the day the options were granted. Options granted until March 2001 become exercisable immediately from the date of grant but cannot be sold within three years; options granted from November 2001 become exercisable after three years. The options have a maximum term of five years for the grants made up to 1998 and of ten years for subsequent grants. The PLC Executive Option Plan The PLC Executive Option Plan provides for the granting of options to purchase shares of Unilever PLC and from 1997 onwards, also shares of Unilever N.V., at a price not lower than the market price on the day the options were granted. These options become exercisable after a three-year period from the date of grant and have a maximum term of ten years. The NA Executive Option Plan The NA Executive Option Plan provides for the granting of options to purchase a maximum of 40.5 million shares in Unilever N.V. of the New York Registry, and 262.0 million shares of Unilever PLC, at a price not lower than the market value on the day the options are granted. These options become exercisable over a three-year period from the date of grant and have a maximum term of ten years. In addition, managers working in India can participate in an Executive Option Plan relating to Hindustan Lever Limited’s shares. As these are neither NV nor PLC shares, no figures for this plan are disclosed in this note. A summary of the status of the Executive Option Plans as at 31 December 2002, 2001 and 2000 and changes during the years ended on these dates is presented below: 2002 2001 2000 Weighted Weighted Weighted Number of average Number of average Number of average shares price shares price shares price NV shares of €0.51 Outstanding at 1 January 8 198 049 €58.95 4 835 834 €57.68 3 856 658 €54.49 Granted 3 658 548 €66.84 4 017 741 €58.26 1 659 616 €54.56 Exercised (373 219) €51.37 (372 052) €33.83 (615 538) €28.88 Forfeited/Expired (a) (343 981) €62.73 (283 474) €60.40 (64 902) €61.73 Outstanding at 31 December 11 139 397 €61.71 8 198 049 €58.95 4 835 834 €57.68 Exercisable at 31 December 4 795 216 €59.84 4 788 521 €58.75 3 418 554 €56.22 PLC shares of 1.4p Outstanding at 1 January 57 255 712 £4.96 34 455 159 £4.89 26 221 302 £4.98 Granted 23 811 993 £5.83 26 126 694 £4.97 10 793 301 £4.35 Exercised (3 931 699) £3.96 (1 649 129) £3.42 (2 129 344) £3.25 Forfeited/Expired (a) (1 995 236) £5.48 (1 677 012) £5.11 (430 100) £5.56 Outstanding at 31 December 75 140 770 £5.28 57 255 712 £4.96 34 455 159 £4.89 Exercisable at 31 December 33 370 192 £5.07 34 846 599 £4.90 25 183 453 £4.72
Page 1 and 2:
Disclaimer Notes to the Annual Repo
Page 3 and 4:
A truly multi-local multinational U
Page 5 and 6:
2 General information The Unilever
Page 7 and 8:
4 Financial highlights at current r
Page 9 and 10:
6 Chairmen’s statement responded
Page 11 and 12:
8 Our code of business principles C
Page 13 and 14:
10 About Unilever Home & Personal C
Page 15 and 16:
12 About Unilever We reduced the im
Page 17 and 18:
14 About Unilever Description of ou
Page 19 and 20:
16 Operating review - highlights 20
Page 21 and 22:
18 Operating review by region Europ
Page 23 and 24:
20 Operating review by region In Ho
Page 25 and 26:
22 Operating review by region Bango
Page 27 and 28:
24 Operating review by category - F
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
32 Operating review by category - H
Page 37 and 38:
34 Operating review by category - H
Page 39 and 40:
36 Financial review The decrease is
Page 41 and 42:
38 Financial review equivalent of
Page 43 and 44:
40 Financial review • Innovation:
Page 45 and 46:
42 Corporate governance Organisatio
Page 47 and 48:
44 Corporate governance Nomination
Page 49 and 50:
46 Corporate governance Biographica
Page 51 and 52:
48 Corporate governance Business Pr
Page 53 and 54:
50 Remuneration report Remuneration
Page 55 and 56:
52 Remuneration report Details of t
Page 57 and 58: 54 Remuneration report Directors’
Page 59 and 60: 56 Remuneration report Remuneration
Page 61 and 62: 58 Remuneration report Supplementar
Page 63 and 64: 60 Remuneration report In addition,
Page 65 and 66: 62 Financial statements - Contents
Page 67 and 68: 64 Statement of directors’ respon
Page 69 and 70: 66 Accounting information and polic
Page 71 and 72: 68 Accounting information and polic
Page 73 and 74: 70 Consolidated statement of total
Page 75 and 76: 72 Notes to the consolidated accoun
Page 103 and 104: 100 Notes to the consolidated accou
Page 107: 104 Notes to the consolidated accou
Page 117 and 118: 114 Five year record Unilever Group
Page 119 and 120: 116 Five year record Unilever Group
Page 121 and 122: 118 Additional information for US i
Page 131 and 132: 128 Principal group companies and f
Page 133 and 134: 130 Principal group companies and f
Page 135 and 136: 132 Company accounts Unilever N.V.
Page 137 and 138: 134 Further statutory information U
Page 139 and 140: 136 Notes to the company accounts U
Page 141 and 142: 138 Control of Unilever Share capit
Page 143 and 144: 140 Control of Unilever If you are
Page 145 and 146: 142 Analysis of shareholding Signif
Page 147 and 148: 144 Nature of the trading market Sh
Page 149 and 150: 146 Taxation for US residents Unite
Page 151 and 152: 148 Cross reference to Form 20-F PA
Page 153 and 154: 150 Financial calendar and addresse
Page 155 and 156: Design: Fitch: London Typesetting:
show all

Report & accounts 2002 in full - Unilever

Create successful ePaper yourself

Delete template?

Save as template?