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9. Employees including Directors

Employee benefit expense 2008
£m
2007
£m
Wages and salaries 1,031 930
Social security costs 161 147
Post-employment costs 38 28
Equity-settled share-based payments 2 6
  1,232 1,111

Amounts included in 2007 above relating to the UK cylinder liner manufacturing operation are wages and salaries £9 million, post-employment costs £1 million and social security costs £1 million.

Average monthly number of employees (including executive Directors) 2008
Number
2007
Number
By business    
Driveline 17,967 18,022
Other Automotive 1,392 1,506
Powder Metallurgy 6,585 6,959
OffHighway 4,108 3,815
Aerospace 7,887 7,241
Central 208 192
Total 38,147 37,735

Key management

The key management of the Group comprises GKN plc Board Directors and the members of the Group’s Executive Committee during the year and their aggregate compensation is shown below. Details of Directors’ remuneration are contained in the Directors’ remuneration report.

Key management compensation 2008
£m
2007
m
Salaries and short term employee benefits 5.5 7.1
Post-employment benefits 1.2 1.2
Termination benefits 0.1
Share-based benefits 0.8 2.5
  7.5 10.9

Salaries and short term employee benefits comprises annual salary, benefits in kind and amounts accrued in respect of short term variable remuneration schemes. Details of the Directors’ short term variable remuneration schemes are set out in the remuneration report. Other members of key management participate in schemes based on the achievement of profit and cash targets and which are payable in cash. The amount outstanding at 31 December 2008 in respect of annual short term variable remuneration was £1 million (2007 – £3 million). Post-employment benefits represent the charge to trading profit under IAS 19 attributable to key management arising in the year and the attributable cost of post-employment medical benefits. Termination benefits include redundancy, pension augmentations and ex gratia payments arising in connection with loss of office and termination of employment with the Group. Share-based payments represents the annual charge attributable to key management in respect of their participation in the Group’s share-based remuneration arrangements; details of the nature of these arrangements are set out in note 10 and in the Directors’ remuneration report. Total awards made or shares granted in the year to key management in respect of these arrangements were:

  2008 2007
  Number of
instruments
000s
Weighted
average
exercise price
pence
Number of
instruments
000s
Weighted
average
exercise price
pence
Executive Options 349 380.30
Long Term Incentive Plan 499
Bonus Co-Investment Plan
Profit Growth Incentive Plan 125

7,141 options were exercised by key management during the year (2007 – 7,141), whilst 1,287,264 options lapsed (2007 – 2,992,479).

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