2007 Financial statements
Note 43 - Directors' and key management remuneration
Aggregate remuneration, calculated in accordance with the Companies Act 1985, of the directors of the parent companies was as follows:
| 2007 US$'000 |
2006 US$'000 |
|
|---|---|---|
| Emoluments | 11,103 | 9,852 |
| Long term incentive plans | 9,573 | 255 |
| 20,676 | 10,107 | |
| Pension contributions: defined contribution plans | 130 | 60 |
| Gains made on exercise of share options | - | 1,260 |
For 2007, a total of US$6,607,100 (2006: US$3,713,900) was attributable to the highest paid director in respect of the aggregate amounts disclosed in the above table, including gains made on exercise of share options. The accrued pension lump sum entitlement for the highest paid director was US$14,014,000 (2006: US$12,124,400).
The aggregate remuneration incurred by Rio Tinto plc in respect of its directors was US$13,678,000 (2006: US$7,296,800).
The aggregate pension contribution to defined contribution plans was US$56,000 (2006: no pension contributions).
The aggregate remuneration, including pension contributions and other retirement benefits, incurred by Rio Tinto Limited in respect of its directors was US$7,128,500 (2006: US$4,130,600). The aggregate pension contribution to defined contribution plans was US$74,000 (2006: US$60,000 to defined contribution plans).
During 2007, three directors (2006: three) accrued retirement benefits under defined benefit arrangements, and one director (2006: one) accrued retirement benefits under defined contribution arrangements.
Emoluments included in the table above have been translated from local currency at the average rate for the year with the exception of bonus payments which, together with amounts payable under long term incentive plans, have been translated at the year end rate.
More detailed information concerning directors' remuneration, shareholdings and options is shown in the Remuneration report, including Tables 1 to 5, of the 2007 Annual report.
Aggregate compensation, representing the expense recognised under EU IFRS, of the Group's key management, including directors, was as follows:
| 2007 US$'000 |
2006 US$'000 |
|
|---|---|---|
| Short term employee benefits and costs | 25,826 | 20,663 |
| Post employment benefits | 4,480 | 3,444 |
| Other long term benefits | 2,537 | 737 |
| Termination benefits | 817 | - |
| Share based payments | 41,540 | 1,631 |
| 75,200 | 26,475 |
The figures shown above include employment costs which comprise of social security and accident premiums in the UK and US and payroll taxes in Australia paid by the employer as a direct additional cost of hire. In total, they amount to US$2,481,000 in 2007 and, although disclosed here, are not included in Table 1 of the Remuneration report.
More detailed information concerning the remuneration of key management is shown in the Remuneration report, including Tables 1 to 5 of the 2007 Annual report.