Pandora_Annual_Report_2018

24,000 20,000 16,000 12,000 8,000 4,000 Production 2017 2018 Sales, distribution and marketing Administration 13,160 9,723 1,147 12,663 7,104 1,137 The Group’s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand and Italy. The defined benefit plans are recognised at the present value of the actuarially measured obliga- tions. In 2018, these obligations amounted to DKK 75 million (2017: DKK 60 million). Actuarial gain was DKK 12 million (2017: loss of DKK 2 million) recognised in equity. The increased obligation was primarily due to more employees. (DKK million) 2018 2017 Total compensation of Board of Directors 6.8 8.4 Certain board members received a fixed travel fee as compensation when attending board meetings abroad in 2018. Total travel fee for 2018 amounted to DKK 0.9 million (2017: DKK 1.2 million). For further details, see the Remuneration Report available on the Pandora website. Accounting policies Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by employees of Pandora. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees. Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits. NOTE 2.3 Staff costs (DKK million) 2018 2017 Wages and salaries 3,697 3,170 Pensions 173 145 Share-based payments -31 66 Social security costs 247 177 Other staff costs 455 445 Total staff costs 4,541 4,003 Staff costs have been recognised in the consolidated income statement: Cost of sales 1,071 961 Sales, distribution and marketing expenses 2,631 2,122 Administrative expenses 839 920 Total staff costs 4,541 4,003 Average number of full-time employees during the year 24,030 20,904 AVERAGE FTE PER FUNCTION (DKK million) 2018 Base pay Bonus Shares Benefits Other Total Total compensation of Executive Management 36.9 21.6 7.6 1.4 5.6 73.1 (DKK million) 2017 Base pay Bonus Shares Benefits Other Total Total compensation of Executive Management 12.7 10.7 6.6 0.7 0.7 31.4 The above compensation to Executive Management in 2018 includes severance pay to Anders Colding Friis and PeterVekslund in the amount of DKK 24.5 million related to base pay, DKK 17.2 million related to expected future bonuses in the notice period and DKK 5.6 million in share-based payment. Furthermore, 'Other' in the table above includes DKK 3.3 million (5 out of 9 months) related to a replacement reward to Anders Boyer. 'Other' also includes DKK 2.3 million as part of a DKK 7 million cash bonus to Jeremy Schwartz, which is payable after 12 months of service. For further details, see the Remuneration Report available on the Pandora website. P A N D O R A A N N U A L R E P O R T 2 0 1 8 C O N T E N T S G R O U P 6 7