Note 24 Employee benefit expense

€ million

2017

2016

Salaries

 

357

 

342

Social security premiums

 

43

 

41

Pension costs:

    

- contributions paid to multi-employer plans that are accounted for as defined-contribution plans

 

45

 

40

     

Termination benefit expenses

6

 

11

 

Other long-term employee benefit expenses

12

 

12

 
  

18

 

23

     

Other staff costs

 

22

 

16

     

Total

 

485

 

462

The staff costs relating to pensions, reorganisations and other long-term employee benefits were as follows:

Employee benefit expense for pensions, reorganisation and other long-term employee benefits

€ million

Multi-employer plans

Termination/reorganisation benefits

Other long-term employee benefits

Total

2016

    

Contributions paid to multi-employer plans

40

-

-

40

Added to provision

-

19

12

31

Released from provision

-

-8

-1

-9

Interest expense

-

-

1

1

     

Total 2016

40

11

12

63

     

2017

    

Contributions paid to multi-employer plans

45

-

-

45

Added to provision

-

10

12

22

Released from provision

-

-4

-

-4

Interest expense

-

-

-

-

     

Total 2017

45

6

12

63

A note on the reorganisation costs is included in note [15] on provisions for employee benefits.

For further details of the other long-term employee benefits, reference is made to the disclosures in note [15]. The external staff costs amounted to €151 million (2016: €123 million) and related to contract staff for specific projects and to fill vacancies.

The number of staff employed by Alliander, based on a 38-hour working week (FTEs), is shown in the table below:

Number of permanent staff (FTEs)

 

2017

2016

Employed in continuing operations

  

-Average during the year

5,719

5,621

-As at 31 December

5,755

5,682

-Number of permanent staff outside the Netherlands

197

179

WNT

On 1 January 2013, the Public and Semi-Public Sector Executives’ Pay (Standards) Act (Wet normering bezoldiging topfunctionarissen publieke en semipublieke sector / WNT) entered into force. This act contains rules for the maximum remuneration for senior executives in the public and semi-public sectors. The WNT limit is set annually by ministerial order.

WNT reporting

The WNT is applicable to network operator Liander N.V., which is required to report on the remuneration of senior executives. In addition, transparency is requested on the remuneration of other internal employees exceeding a set limit in the reporting year. The separate annual report of the network operator, which is to be published in the second quarter of 2018, will contain disclosures on the WNT requirements applicable to the network operator.

Remuneration of the Management Board and the Supervisory Board

The Remuneration Report sets out the remuneration policy, its implementation and the remuneration of the Management Board and the Supervisory Board (key management). These three sections can be found in article ‘Corporate governance’ of the 2017 Annual Report. The remuneration of the members of the Management Board is disclosed in the following table.

Total gross annual remuneration chargeable to the financial year

 

Fixed salary

Long-term variable remuneration

Total

€ thousand

2017

2016

2017

20161

2017

2016

I.D. Thijssen

210

208

-

-

210

208

M.R. van Lieshout

290

237

-

29

290

266

P.C. Molengraaf2

172

252

-

31

172

283

       

Total

672

697

-

60

672

757

  • 1 This includes the difference between the accrued entitlement as at year-end 2015 and the actual payment in 2016. For Mr Molengraaf, this is an amount of€7,000 and for Mr Van Lieshout €6,000.
  • 2 Retired 31 August 2017.

The fixed salary concerns the actual payment per annum, without amounts accrued for other remuneration elements. The short-term variable remuneration element was discontinued at the end of 2015. The long-term variable remuneration concerns a payment that has been earned over a period of three years. As at year-end 2016, the long-term variable remuneration figure concerns the period 2014-2016. The award of a long-term variable remuneration element has now also been discontinued, with the long-term variable remuneration for the period 2014-2016 being the last award and payment to be made.

The partial incorporation of the short-term variable remuneration into the salary will start on 1 January 2017 for Messrs Molengraaf and Van Lieshout. The variable remuneration system was not applicable to Ms Thijssen.

For Ms Thijssen, the contractual increase in her salary in 2016 was overlooked in error. This situation was corrected in 2017 with retroactive effect on her salary.

Settlement of contract obligations

On the departure of Mr Molengraaf on 31 August 2017, the Supervisory Board acted in accordance with the contractually agreed arrangements with Mr Molengraaf. As a consequence, Mr Molengraaf received a payment of €517,000.

Pension contributions

€ thousand

2017

2016

I.D. Thijssen

19

17

M.R. van Lieshout

22

18

P.C. Molengraaf1

12

18

   

Total

53

53

  • 1 Retired 31 August 2017.

Social security charges and other remuneration elements

€ thousand

2017

2016

I.D. Thijssen

12

12

M.R. van Lieshout

26

25

P.C. Molengraaf1

18

26

   

Total

56

63

  • 1 Retired 31 August 2017.

In addition to the normal social security charges and contributions applicable to the company, the members of the Management Board have a right to an employer’s contribution towards the group health insurance premium, premiums connected with the personalised package of secondary conditions of employment (Dutch acronym: PBA), an expense allowance and the use of a company car.

Remuneration of the Supervisory Board

€ thousand

2017

2016

ms. A. Jorritsma-Lebbink, Chairman1

27.2

13.4

ms. A.P.M. van der Veer-Vergeer

18.1

21.8

ms. J.G. van der Linde

18.1

17.8

B. Roetert

18.1

17.8

G.L.M. Hamers2

18.1

13.1

E.M. d’Hondt3

-

13.4

J.C. van Winkelen4

-

4.8

   

Total

99.6

102.1

  • 1 Ms Jorritsma was appointed with effect from 1 July 2016.
  • 2 Mr Hamers was appointed with effect from 7 April 2016.
  • 3 Mr d’Hondt retired on 30 June 2016.
  • 4 Mr Van Winkelen retired on 7 April 2016.

The differences in remuneration are connected with i) positions held, ii) tenure in those positions, iii) transitional entitlements under the WNT or a combination of these things. Transitional entitlements under the WNT ceased to be applicable in the course of 2016 on the reappointment of a Supervisory Board member.