Unilever Annual Report & Accounts and Form 20-F 2000

42
Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors
Remuneration report
Participants are further incentivised by the grant of
‘premium options’. These are options granted to reward
commitment and good performance over a five year period.
The first premium options will be granted in 2002 in respect
of initial grants of options made in 1997. To qualify for the
grant of a premium option the Group must have performed
well over the preceding five years and each individual must
not have realised free cash from the exercise of options
granted in the previous five years and must have received on
average at least 100% of his normal allocation over the
preceding five years. Premium options will be granted over
20% of the number of shares subject to the individual’s
initial grant of options under the scheme. Amongst the
changes planned for implementation in 2001, it is proposed
that no grants of premium options will be made in respect
of initial grants of options made after 2000 and this
incentive will be withdrawn.
Under the terms of options to acquire ordinary shares under
the NV Executive Option Plan, some individuals may be or
have been granted the right to elect to receive the
Options to purchase securities from NV, PLC or their subsidiaries
equivalent cash value instead of receiving shares on the
exercise of their options. This right is rescindable by the
company (NV or a wholly owned subsidiary of NV) which
granted such options, while they remain unexercised. It is
the general intention of the company that this right will
remain extended where it may be unduly disadvantageous
to an individual not to have such a right.
Under the terms of the PLC Unilever 1985 Unapproved
Executive Share Option Scheme (formerly the Unilever PLC
Expatriate Share Option Scheme), PLC has the right to
substitute the equivalent cash value for any individual’s right
to acquire shares on the exercise of their options. It is not
PLC’s intention to exercise this right except in circumstances
where it may be unduly disadvantageous to an individual
were it not to do so.
Unilever meets the obligations under its option plans by
transferring previously purchased shares to directors and
employees as the options are exercised.
Options held by directors and employees to acquire ordinary shares of NV and PLC at 31 December 2000 are shown in note
21 on page 65.
Options over the following number of shares were granted, exercised, forfeited or expired between 31 December 2000 and
28 February 2001.
Granted Exercised, forfeited or expired
Shares of 1.4p Shares of Fl. 1.12 Shares of 1.4p Shares of Fl. 1.12
UK Employee Sharesave Plan - - 508 190 -
PLC Executive Option Plans - - 144 106 5 755
NV Executive Option Plan - - 60 400 15 468
Netherlands Employee Option Plan - - - 22 000
German Employee Option Plan - - - 8 655
French Employee Option Plan - - - 11 400
Restricted Share Plan - - - -
Granted Exercised, forfeited or expired
Shares of 1.4p Shares of 1.4p
in the form of in the form of
American Shares of Fl. 1.12 American Shares of Fl. 1.12
Depositary of the New York Depositary of the New York
Receipts Registry Receipts Registry
NA Executive Option Plan - - - 5 800
NA Employee Purchase Plan - - - 30 764
As at 28 February 2001 the directors and officers as a group held options to purchase the following ordinary shares:
3 641 503 shares of 1.4p
464 589 shares of Fl. 1.12
454 828 shares of 1.4p (held as 113 707 ADR’s)
215 915 shares of Fl. 1.12 of the New York Registry