Chrysler 2008 Annual Report Download - page 273

Other revenues and income from Group companies mostly related to rental income from real estate properties and to directors’
fees paid by companies for duties performed by Fiat S.p.A. employees.
Other revenues and income from third parties related to miscellaneous income, the recovery of expenses and prior year income. In
2007 this item also included the reversal of accruals made to provisions for €18,000 thousand as the contingent liability no longer
existed at the balance sheet date.
5. Personnel costs
A breakdown of Personnel costs is provided in the following table:
(€ thousands) 2008 2007
Wages and salaries 20,476 31,560
Defined contribution plans and social security contributions 7,772 13,039
Employee severance indemnity and other defined benefit plans 546 2,477
Other long-term employee benefits –211
Compensation component from stock option plans 1,447 7,235
Other personnel costs 7,456 1,461
Total Personnel costs 37,697 55,983
The average number of employees for the year rose from 143 in 2007 (64 managers, 69 white-collar workers and 10 blue-collar
workers) to 151 in 2008 (66 managers, 76 white-collar workers and 9 blue-collar workers). As described in Note 4, certain of the
company’s managers (an average of 9 managers in 2008 and 13 in 2007) performed their duties at the premises of Group’s
principal subsidiaries with their costs then being recharged to those companies.
The decrease in costs for wages and salaries and for social security contributions was mainly due to the allocation of variable
components of compensation to these line items in 2007 while they are currently reported under Other personnel costs, with an
offsetting entry under Provision for employee bonuses as discussed in Note 23.
Defined contribution plans consisted of the amounts paid by the company to the Italian insurance bodies (INPS) and other social
security and assistance organisations for post-employment benefit defined contribution plans (pension plans and medical care) on
behalf of all categories of employees. Following the introduction of Law 296/06, the employee severance indemnity accruing from
1 January 2007 and paid over to complementary pension funds or the treasury fund established by the Italian State social security
organisation INPS is treated as a cost for a defined contribution plan, while the adjustments to the employee severance indemnity
accruing before 1 January 2007 are recognized in the income statement under “Employee severance indemnity and other defined
benefit plans” (see Note 20).
Social security contributions consisted of the amount paid by the Company to social security agencies in Italy (INPS and INAIL) on
behalf of employees for short-term benefits such as sickness, injury and compulsory maternity leave.
The compensation component from stock option plans relates to plans for managers employed by Fiat S.p.A. having Fiat shares
underlying and represents the notional cost recognised as an offsetting entry to the relevant equity reserve (see Note 19). This
amount relates to the November 2006 and July 2008 plans (see Note 19).
Fiat S.p.A. Statutory Financial Statements at 31 December 2008272