ING Direct 2011 Annual Report Download - page 194

Notes to the consolidated annual accounts of ING Group continued
45 STAFF EXPENSES
Staff expenses
Banking operations Insurance operations Total
2011 2010 2009 2011 2010 2009 2011 2010 2009
Salaries 3,705 3,836 3,555 1,602 1,621 1,492 5,307 5,457 5,047
Pension and other staff-related
benefit costs 171 199 180 86 114 140 257 313 320
Social security costs 525 532 510 152 169 151 677 701 661
Share-based compensation
arrangements (1) 119 79 57 58 40 39 177 119 96
External employees 683 627 660 140 123 96 823 750 756
Education 69 61 57 20 11 789 72 64
Other staff costs 219 220 190 760 137 226 280 327
5,491 5,554 5,209 2,065 2,138 2,062 7,556 7,692 7, 271
(1) The increase in Share-based compensation arrangements can be explained by ING’s implementation of a global deferral plan as well as regulatory
developments which require payment of variable remuneration in stock in lieu of cash.
Number of employees
Netherlands International Total
2011 2010 2009 2011 2010 2009 2011 2010 2009
Continuing operations - average
number of employees atfull time
equivalent basis 26,332 27,750 27,912 71,711 71,621 75,794 98,043 99,371 103,706
Discontinued operations - average
number of employees atfull time
equivalent basis 6,376 6,769 6,571 6,376 6,769 6,571
Total average number of employees
atfull time equivalent basis 26,332 27,750 27,912 78,087 78,390 82,365 104,419 106,140 110,277
Share-based compensation arrangements includes EUR 153 million (2010: EUR 90 million; 2009: EUR 65 million) relating to equity-settled
share-based payment arrangements and EUR 24 million (2010: EUR 29 million; 2009: EUR 31 million) relating to cash-settled share-based
payment arrangements.
Pension and other staff-related benefit costs
Pension benefits
Post-employment benefits
other than pensions Other Total
2011 2010 2009 2011 2010 2009 2011 2010 2009 2011 2010 2009
Current service cost 324 298 320 85–8 9–2 –38 341 301 274
Past service cost –8 –1 20 –4 –21 –12 –1 –1
Interest cost 851 795 778 8810 65 9 865 808 797
Expected return on assets –877 –886 –842 1 1 –877 –885 – 841
Amortisation of unrecognised past
service cost 1–1 –5 –1 –5 –1
Amortisation of unrecognised
actuarial (gains)/losses 22 62 106 –4 –9 –5 1 1 5 19 54 106
Effect of curtailment or settlement –110 –7 –96 –110 –7 –96
Other 1 –14 –16 –18 15 –15 –18 1
Defined benefit plans 204 261 272 7–1 –25 0–13 –8 211 246 239
Defined contribution plans 46 67 81
257 313 320
Remuneration of senior management, Executive Board and Supervisory Board
Reference is made to Note 33 ‘Related parties’.
Stock option and share plans
ING Group has granted option rights on ING Group shares and conditional rights on depositary receipts (share awards) for ING shares to
anumber of senior executives (members of the Executive Board, general managers and other officers nominated by the Executive Board),
and to a considerable number of employees of ING Group. The purpose of the option and share schemes, apart from promoting a lasting
growth of ING Group, is to attract, retain and motivate senior executives and staff.
In 2011, ING granted two types of share awards, deferred shares and performance shares. The entitlement to the share awards is granted
conditionally. If the participant remains in employment for an uninterrupted period between the grant date and the vesting date, the
entitlement becomes unconditional. In addition to the employment condition, the performance shares contain a performance condition. The
number of ING depositary receipts that would ultimately be granted at the end of a performance period is dependent on ING’s performance
over that period.
192 ING Group Annual Report 2011