Chrysler 2010 Annual Report Download - page 323

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2010
NOTES
322
Other revenues and income from Group companies mostly related to the recovery of costs, 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 relate to miscellaneous income, recovery of costs and other prior year income.
The overall decrease in other operating income over 2009 was due to the winding down of contract work for T.A.V. S.p.A. (now Rete Ferroviaria Italiana S.p.A.).
5. Personnel costs
A breakdown of personnel costs is provided in the following table:
(€ thousand) 2010 2009
Wages and salaries 20,821 20,692
Defined contribution plans and social security contributions 7,968 7,921
Employee severance indemnity and other defined benefit plans 389 389
Compensation component from stock option plans - (3,494)
Other personnel costs 14,207 6,080
Total personnel costs 43,385 31,588
The average number of employees for the year decreased from 152 in 2009 (66 managers, 79 white-collars and 7 blue-collars) to 144 in 2010 (63 managers,
74 white-collars and 7 blue-collars). As described in Note 4, certain of the company’s managers (an average of 10 managers in 2010 and 11 in 2009) 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 organization (INPS) and other social security and
assistance organizations 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 organization 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 recognized against the relevant equity reserve (see Note 19). In 2009, as performance targets for the relative tranches of the
November 2006 and July 2008 Plans vesting during the period were not met, the probability of subsequent tranches vesting was re-evaluated and, at year-
end 2009, Fiat S.p.A. released accruals for the notional cost of those tranches which had been recognized in prior years. No related charges arose in 2010.
Other personnel costs related mainly to accruals to provisions for employee bonuses, leaving incentives and insurance.
For 2010, compensation to executives with strategic responsibilities was €21,549 thousand (€10,121 thousand of which was charged back to the Group
companies where they carried out their activities). The total cost included the following:
severance indemnity accrued during the year, amounting to €986 thousand;
contributions by the Company to state and company defined contribution schemes and social security contributions for €4,582 thousand;
costs for the year for a special defined benefit plan, amounting to €384 thousand (including the component recognized in financial expenses).