Annual Report and Accounts 2006 - DCC plc

notes to the financial statements759. EmploymentThe average weekly number of persons (including executive Directors and the Group’s share of employees of jointventures, applying proportionate consolidation) employed by the Group during the year analysed by class of business was:2006 2005number numberDCC Energy 1,779 1,733DCC SerCom 1,321 1,284DCC Healthcare 929 742DCC Food & Beverage 907 833DCC Environmental 173 1545,109 4,746The staff costs for the above were: 2006 2005€’000 €’000Wages and salaries 174,860 157,924Social welfare costs 18,033 16,679Share based payment expense (note 10) 1,840 1,003Pension costs - defined contribution plans 4,816 3,639Pension costs - defined benefit plans (note 32) 3,062 3,421202,611 182,66610. Employee share optionsThe Group’s employee share options are equity-settled share-based payments as defined in IFRS 2 Share-based Payment.The IFRS requires that a recognised valuation methodology be employed to determine the fair value of share optionsgranted. The expense reported in the Income Statement of €1.840 million (2005: €1.003 million) has been arrived atthrough applying the binomial model, which is a lattice option-pricing model, for options issued under the DCC plc 1998Employee Share Option Scheme and the Black Scholes option valuation model for options issued under the DCCSharesave Scheme 2001.Impact on income statementIn compliance with the transitional provisions set out in IFRS 2 Share-based Payment the Group has elected to implementthe measurement requirements of the IFRS in respect of share options that were granted after 7 November 2002 thathad not vested as at 1 January 2005, the effective date of the standard.The total expense is analysed as follows:WeightedExpense inGrant Duration Number of average income statementprice of vesting options fair value 2006 2005Date of grant € period granted € €’000 €’000DCC plc 1998 Employee Share Option Scheme12 November 2002 10.38 3 and 5 years 609,500 2.81 349 39422 December 2003 10.70 3 and 5 years 132,000 2.76 94 9418 May 2004 12.75 3 and 5 years 162,500 3.42 150 1259 November 2004 15.65 3 and 5 years 219,500 4.15 269 9015 December 2005 16.70 3 and 5 years 215,000 4.52 79 -941 703DCC Sharesave Scheme 200110 December 2004 12.63 3 and 5 years 716,010 4.67 899 300Total expense 1,840 1,003