TomTom 2005 Annual Report Download - page 69
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4.Costofsales
TheCompany’scostofsalesconsistsofmaterialcosts
forgoodssoldtocustomers,royaltyexpensesformap
softwaresuppliedandlogisticscostsincurredon
inventorysoldduringtheyear.
5.Employeebenefits
Retirementbenefitscheme
TheCompany’sretirementbenefitplanisclassifiedasa
definedcontributionplan,limitingtheemployer’slegal
obligationtotheamountitagreestocontributeduring
theperiodofemployment.Thesecontributionsare
recognisedintheperiodtowhichtheyrelate.
EmployeesintheUnitedStatesareofferedthe
opportunitytoparticipateinthe401Kpensionplan,which
involvesnocontributionorobligationfromtheCompany
besideswithholdingandpayingtheemployee
contribution.
Theaveragenumberofemployeesin2005was316
(2004:150).At31December2005,theCompany
employed435persons(2004:196).
Remunerationpolicyformembersofthe
ManagementBoardandtheSupervisoryBoard
TheremunerationofmembersoftheManagement
BoardisdrawnupandapprovedbytheSupervisory
Board.
InaccordancewiththeDutchCorporateGovernance
Codeasissuedon9December2003,theremuneration
ofSupervisoryBoardmembersdoesnotdependonthe
resultsoftheCompany.TheCompanydoesnotgrant
eitherstockoptionsorsharestoitsSupervisoryBoard
membersandtheCompanydoesnotprovideloansto
them.
Thetotalremunerationpaidtooronbehalfofmembers
oftheManagementBoardintheyearended31
December2005amountedto
2.2million(2004:
3.6
million),ofwhich37%representedbonuspayments
(2004:7%).Thebonusiscalculatedas1%ofprofit
beforetaxandissharedequallyacrossallmembersof
theseniormanagementteamincludingthemembers
oftheManagementBoard.