Carphone Warehouse 2007 Annual Report Download - page 49

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www.cpwplc.com
5 Employee costs
The average monthly number of employees (including Executive Directors) was:
2007 2006
Number Number
Administration 3,839 2,501
Sales and customer management 15,971 12,762
19,810 15,263
Their aggregate remuneration (including Executive Directors) recognised in the income statement comprised:
2007 2006
£’000 £’000
Wages and salaries 439,182 338,833
Social security costs 61,985 51,343
Other pension costs 3,373 2,847
504,540 393,023
Share-based payments (see note 6) 10,410 10,665
514,950 403,688
In addition to the costs recognised in the income statement, employee costs of £32.0m (2006 – £22.2m) were capitalised in the period in relation to internally
generated intangible assets and network equipment.
A further £8.8m (2006 – £1.5m) of redundancy and other employee costs were incurred in the period and offset against the reorganisation provision arising from
the Onetel acquisition (see note 4).
Compensation earned by key management, comprising the Executive Directors and other employees who serve on the Executive Committee, was as follows:
2007 2006
£’000 £’000
Salaries and fees 3,547 3,219
Performance bonuses 3,374 3,632
Benefits 171 182
Pension costs 211 181
Share-based payments 2,468 2,313
9,771 9,527
Details of Directors’ remuneration are provided in the Remuneration Report on pages 25 to 30.
At 31 March 2007 there were no loans (2006 – £1.1m) outstanding from Group executives. None of the loans outstanding at 1 April 2006 was due from a Director
of the Company.
6 Share-based payments
The Group issues equity settled share-based payments to certain employees, through the following schemes:
a) Performance Share Plan:
During the period the Group made awards of nil cost options under a Performance Share Plan. These awards are subject to Total Shareholder Return (“TSR”)
performance targets measured over an initial performance period to 4 June 2010 and a subsequent performance period to 4 June 2011. The awards made under
this plan in previous periods are subject to a mixture of Headline earnings per share (see note 11) and TSR performance targets measured over a three or four year
performance period. If the options remain unexercised after a period of ten years from the date of grant, the options expire. Options are forfeited if the employee
leaves the Group before the options vest. Details of the performance targets are provided in the Remuneration Report on pages 25 to 30.
The following table summarises the number and weighted average exercise prices (“WAEP”) of share options for the scheme:
2007 2006
Number WAEP Number WAEP
000’s £ 000’s £
Outstanding at the beginning of the period 29,433 – 27,870 –
Granted during the period 24,476 – 2,955 –
Forfeited during the period (1,804) – (1,392) –
Outstanding at the end of the period 52,105 – 29,433 –
Exercisable at the end of the period ––––
The options outstanding at 31 March 2007 had a weighted average remaining contractual life of 9.0 years (2006 – 8.9 years).
45
Financial Statements