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86 • Consolidated financial statements PANDORA ANNUAL REPORT 2016
SECTION 2: RESULTS FOR THE YEAR, CONTINUED
STAFF COSTS
DKK million 2016 2015
Wages and salaries 2,825 2,345
Pensions 127 102
Share-based payments 76 75
Social security costs 151 79
Other staff costs 409 319
Total staff costs 3,588 2,920
Staff costs have been recognised in the consolidated income statement:
Cost of sales 891 731
Sales, distribution and marketing expenses 1,827 1,471
Administrative expenses 870 718
Total staff costs 3,588 2,920
Average number of full-time employees during the year 17,770 13,971
2016 2015
DKK million Salary Bonus Shares Total Total
Anders Colding Friis1 8.8 12.5 3.4 24.7 18.7
Peter Vekslund 4.1 4.0 3.0 11.1 7.2
Allan Leighton - - - - 12.6
Total compensation of Executive Management 12.9 16.5 6.4 35.8 38.5
DKK million 2016 2015
Peder Tuborgh, Chairman 1.5 1.5
Christian Frigast, Deputy Chairman 0.9 0.9
Allan Leighton, Deputy Chairman 0.9 0.7
Anders Boyer-Søgaard 0.6 0.7
Andrea Alvey 0.7 0.6
Birgitta Stymne Göransson 0.6 -
Bjørn Gulden 0.6 0.6
Michael Hauge Sørensen 0.7 0.6
Nikolaj Vejlsgaard - 0.1
Per Bank 0.6 0.6
Ronica Wang 0.7 0.6
Torben Ballegaard Sørensen - 0.1
Total compensation of Board of Directors 7.8 7.0
1 The bonus amount for Anders Colding Friis include the cost for one year relating to a sign-on bonus. The bonus is dependent on 24 months of service and will
be paid in March 2017, DKK 4 million (2015: DKK 3 million).
2.3
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 obligations. In 2016, these obligations
amounted to DKK 44 million (2015: DKK 27 million).
Actuarial loss was DKK 2 million (2015: DKK 0 million)
recognised in equity. The increased obligation is primarily
due to more employees.
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 provided by the employee in
exchange for the benefits.