Mercedes 1998 Annual Report Download - page 85

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Personnel expenses included in the statement of income are
comprised of:
19971998
Year ended December 31,
1996
Number of employees (annual average):
19971998
Year ended December 31,
Hourly employees 268,764 261,426 262,048
Salaried employees 152,415 147,882 146,006
Trainees/apprentices 12,760 12,353 11,704
433,939 421,661 419,758
1996
In 1998, 36,024 people (1997: 34,448 people; 1996: 34,655
people) were employed in joint venture companies.
In 1998, the total remuneration paid by Group companies to
the members of the Board of Management of DaimlerChrysler
AG amounted to € 41, and the remuneration paid to the
members of the Supervisory Board of DaimlerChrysler AG
totaled € 2. Additionally, members of the Board of Management
subscribed for convertible bonds at a notional amount of € 0.6
within the 1998 Stock Option Plan. Options totalling 1,755,000
and 12,000 to purchase Chrysler common stock were granted
to members of the Board of Management and the Supervisory
Board, respectively (see Note 21).
To determine the fair value of the option rights, option pricing
models may be used. As such, the resulting fair values can
fluctuate significantly based upon the underlying assumptions.
Accordingly, uniform and consistent values are generally not
available. See Note 21 with respect to the valuation of the
option rights including the underlying assumptions and
conditions of converting the option rights in accordance with
SFAS 123, “Accounting for Stock-Based Compensation.”
As of December 31, 1998, no advances and loans existed to
members of the Board of Management of DaimlerChrysler AG.
6. OTHER INCOME
Other income includes gains on sales of property, plant and
equipment (€ 99, € 95 and € 130 in 1998, 1997 and 1996,
respectively), gains on sales of companies (€ 389, € 117 and
€ 197 in 1998, 1997 and 1996, respectively), rental income
(€ 138, € 87 and € 52 in 1998, 1997 and 1996, respectively),
foreign currency exchange gains (€ 116, € 109 and € 21 in
1998, 1997 and 1996, respectively), and reductions in certain
accruals (€ 199, € 154 and € 114 in 1998, 1997 and 1996,
respectively).
81
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Wages and salaries 19,982 18,656 17,143
Social levies 2,990 2,817 2,527
Net periodic pension cost (see Note 22a) 1,126 1,076 1,228
Net periodic postretirement benefit
cost (see Note 22a) 866 755 673
Other expenses for pensions and retirements 69 66 77
25,033 23,370 21,648