Chrysler 2007 Annual Report Download - page 266

Social security contributions consist of the amount paid by the company to the Italian insurance and assistance bodies (INPS and
INAIL) for short-term benefits on behalf of employees such as sickness benefits, industrial injury benefits and compulsory
maternity leave.
The compensation component of stock option plans refers to those plans based on Fiat S.p.A. shares and regards managers
employed by Fiat S.p.A. More specifically the amount refers to the November 2006 plan (see Note 18).
As required by the accounting standards relating to stock option plans (IFRS 2) and their interpretations (IFRIC 11), the
compensation component of the stock option plans based on Fiat S.p.A. shares but relating to managers employed by other Group
companies is not recognised in the income statement of the parent Fiat S.p.A. but is instead treated as a capital contribution to the
subsidiaries and accordingly recorded as an increase in the book value of the investee company (see Note 11) by which the
managers included in the stock option plan are directly or indirectly employed.
Finally, the compensation component of stock option plans relating to the Chief Executive Officer is classified as Other operating
costs (see Note 6) consistent with the classification of his other compensation. Accordingly to such new and more representative
criteria, the corresponding amount for 2006 have been reclassified in the presentation of the comparative figures.
In 2007, Other personnel costs relate mainly to employee “one-off” payments, leaving incentives and insurance.
The aggregate 2007 charge for the compensation of executives with strategic responsibilities amounts to 20,819 thousand euros
(9,753 thousand euros of which recharged to the companies where they performed their duties). This amount is inclusive of the
following:
■severance indemnity accrued during the year, amounting to 974 thousand euros;
■the contribution by the Company to state and company defined contribution pension funds and social security contributions for
4,636 thousand euros;
■the cost accounted in the year for a special defined benefit plan, amounting to 1,672 thousand euros in 2006 (including the
component recognized in financial expenses).
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements 265