Report & accounts 2002 in full - Unilever

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29 Equity-based compensation plans continued Unilever Annual Report & Accounts and Form 20-F 2002 Notes to the consolidated accounts 107 Unilever Group 2002 2001 2000 Weighted Weighted Weighted Number of average Number of average Number of average shares price shares price shares price NV New York shares of €0.51 Outstanding at 1 January 2 736 921 $49.23 2 030 941 $47.29 1 963 471 $45.41 Granted 755 295 $59.44 840 937 $52.22 294 645 $51.77 Exercised (242 276) $36.00 (119 965) $36.02 (185 740) $30.53 Forfeited/Expired (a) (28 926) $57.52 (14 992) $59.43 (41 435) $65.22 Outstanding at 31 December 3 221 014 $52.54 2 736 921 $49.23 2 030 941 $47.29 Exercisable at 31 December 1 888 079 $50.10 1 632 955 $46.29 1 473 860 $42.00 PLC shares of 1.4p in the form of ADRs (d) Outstanding at 1 January 12 744 844 $7.89 7 491 864 $8.33 5 830 480 $8.82 Granted 4 994 640 $8.42 5 566 904 $7.25 1 975 788 $6.95 Exercised (598 300) $7.14 (208 116) $6.86 (47 572) $6.72 Forfeited/Expired (a) (144 032) $8.40 (105 808) $8.08 (266 832) $9.13 Outstanding at 31 December 16 997 152 $8.06 12 744 844 $7.88 7 491 864 $8.33 Exercisable at 31 December 8 175 172 $8.29 5 415 724 $8.57 3 758 584 $8.35 (a) The number of expired options is immaterial. (d) 1 ADR is equivalent to 4 PLC shares. 2002 2001 2000 NV option value information (b) Fair value per option (c) €18.74 (e) €16.57 (e) €10.83 (e) £11.59 (f) £8.94 (f) £6.25 (f) $16.32 (g) $13.96 (g) $15.97 (g) Valuation assumptions Expected option term 6.0 years 6.3 years 6.3 years Expected volatility 27.6% 28.5% 24.5% Expected dividend yield 2.4% 2.5% 4.0% Risk-free interest rate 5.0% 4.1% 5.2% PLC option value information (b) Fair value per option (c) €2.62 (e) €2.01 (e) €1.82 (e) £1.62 (f) £1.24 (f) £1.00 (f) $2.23 (g) $1.86 (g) $1.95 (g) Valuation assumptions Expected option term 6.0 years 6.8 years 6.3 years Expected volatility 27.1% 26.0% 23.9% Expected dividend yield 2.6% 2.9% 3.2% Risk-free interest rate 5.3% 4.6% 5.9% Actual compensation costs recognised (€ million) – – – (b) Weighted average of options granted during each period. (c) Estimated using Black Scholes option pricing method. (e) Fair value per option of the NV Executive Option Plan. (f) Fair value per option of the PLC Executive Option Plan. (g) Fair value per option of the NA Executive Option Plan. Financial Statements
108 Notes to the consolidated accounts Unilever Group 29 Equity-based compensation plans continued The exercise prices and remaining life of the Executive 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 €42.79 - €60.85 5 338 303 8 years €56.68 2 551 726 €54.88 €63.50 - €73.97 5 801 094 8 years €66.35 2 243 490 €65.48 PLC shares of 1.4p £2.54 - £3.08 1 795 242 2 years £2.98 1 795 242 £2.98 £3.43 - £4.78 24 183 118 8 years £4.54 16 389 469 £4.54 £5.22 - £6.79 49 162 410 8 years £5.73 15 185 481 £5.89 NV New York shares of €0.51 $25.67 - $33.89 647 995 2 years $31.03 647 995 $31.03 $41.16 - $56.13 1 312 546 7 years $51.37 706 730 $50.73 $58.76 - $76.69 1 260 473 8 years $64.82 533 354 $72.44 PLC shares of 1.4p in the form $5.56 - $7.73 8 619 296 7 years $7.08 4 604 564 $6.97 of ADRs (d) $8.35 - $10.85 8 377 856 8 years $9.07 3 570 608 $10.00 (d) 1 ADR is equivalent to 4 PLC shares. (iii) The Share Matching Plans Under these plans managers can invest up to 25% of their gross bonus in Unilever shares. The Company matches this with the same number of shares on condition that all shares are held for the agreed period (five years for awards made until 2001, three years from 2002 onwards), and that the manager has not resigned from Unilever at the end of this period. The North American managers participate in the North American Share Bonus Plan, the others in the Variable Pay in Shares Plan. The numbers below include the numbers under the plan for the directors described in the Remuneration report on page 50. A summary of the status of the Share Matching 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 77 613 €0.00 26 302 €0.00 4 891 €0.00 Awarded 148 990 €0.00 51 526 €0.00 21 411 €0.00 Exercised (143) €0.00 – – – – Forfeited/Expired (a) (1 056) €0.00 (215) €0.00 – – Outstanding at 31 December 225 404 €0.00 77 613 €0.00 26 302 €0.00 Exercisable at 31 December – – – – – – PLC shares of 1.4p Outstanding at 1 January 570 703 £0.00 198 676 £0.00 36 779 £0.00 Awarded 1 065 406 £0.00 373 646 £0.00 161 897 £0.00 Exercised (1 053) £0.00 – – – – Forfeited/Expired (a) (7 670) £0.00 (1 619) £0.00 – – Outstanding at 31 December 1 627 386 £0.00 570 703 £0.00 198 676 £0.00 Exercisable at 31 December – – – – – – (a) The number of expired share awards is immaterial.
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Disclaimer Notes to the Annual Repo
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2 General information The Unilever
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42 Corporate governance Organisatio
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50 Remuneration report Remuneration
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Page 151 and 152: 148 Cross reference to Form 20-F PA
Page 153 and 154: 150 Financial calendar and addresse
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Report & accounts 2002 in full - Unilever

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