Chrysler 2009 Annual Report Download - page 297

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2009
NOTES
296
5. Personnel costs
A breakdown of personnel costs is provided in the following table:
(€ thousand) 2009 2008
Wages and salaries 20,692 20,476
Defined contribution plans and social security contributions 7,921 7,772
Employee severance indemnity and other defined benefit plans 389 546
Compensation component from stock option plans (3,494) 1,447
Other personnel costs 6,080 7,456
Total personnel costs 31,588 37,697
The average number of employees for the year rose from 151 in 2008 (66 managers, 76 white-collars and 9 blue-collars) to 152 in 2009 (66 managers, 79
white-collars and 7 blue-collars). As described in Note 4, certain of the Company’s managers (an average of 11 managers in 2009 and 9 in 2008) carried
out their activities at the Group’s principal subsidiaries and the related costs were recharged to those companies.
Defined contribution plans consisted of the amounts paid by the Company to the Italian State social security organisation (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 statement of financial position 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 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. which are based on Fiat S.p.A. shares and
represents the notional cost recognised against the relevant equity reserve (see Note 19). The amount reported relates specifically to the November 2006 and
July 2008 plans (see Note 19). Since performance targets relating to the tranches which vest in the first quarter of 2010 were not reached, the probability of
subsequent tranches vesting has been revised. At year-end 2009, Fiat S.p.A. therefore released accruals for the notional cost of those tranches which had
been recognised in prior years (a similar release was recognised in 2008).
As required by the accounting standard for stock option plans (IFRS 2) and the related interpretation (IFRIC 11), the compensation component from 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 Fiat
S.p.A. but rather is treated as a capital contribution and recorded as an increase in the book value of the investee companies (see Note 12) which directly
or indirectly employ plan beneficiaries. An offsetting entry is made to the relevant equity reserve (see Note 19).
Other personnel costs related mainly to accruals to provisions for employee bonuses, leaving incentives and insurance.
The aggregate charge in 2009 for compensation to executives with strategic responsibilities was €20,165 thousand (€11,822 thousand of which was
charged back to Group companies where they performed their duties). This amount included the following:
severance indemnity accrued during the year, amounting to €638 thousand;
contributions by the Company to state and company defined contribution schemes and social security contributions for €2,960 thousand;
costs for the year for a special defined benefit plan, amounting to €954 thousand (including the component recognized in financial expenses).