Notes to the Accounts For the year ended 31 December 2007
26. Related party transactions
Identity of related parties
The Group has a related party relationship with its Directors and members of the Executive Board, and subsidiaries (Note 12).
Transactions with key management personnel
Key management personnel are deemed to be the Directors and members of the Executive Board. The remuneration of Directors and members of the Executive Board is determined by the Remuneration Committee having regard to the performance of individuals and market trends. For transactions with Directors see the Remuneration Report on pages 43 to 49. Over and above these transactions, equity settled transactions for the year were £2.2m (2006: £1.3m). Transactions with the remaining members of the Executive Board are disclosed below:
| 2007 £'000 |
2006 £'000 |
|
|---|---|---|
| Short-term employee benefits | 746 | 468 |
| Pension costs - defined contribution plans | 40 | 33 |
| Equity settled transactions | 340 | – |
| Termination benefits | – | 63 |
The increase in emoluments in the current year represents members being on the Executive Board for a full year and an increase in the bonus award, as well as awards made under the Michael Page Executive Share Option Scheme.
In addition to their salaries, the Group also provides non-cash benefits to members of the Executive Board, and contributes to a post-employment defined contribution pension plan on their behalf, details of which are given in Note 1.
Transactions between the Group and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation. Details of transactions between the parent company and subsidiary undertakings are shown below.
| Dividends received | Amounts owed by related parties |
Amounts owed to related parties |
||||
|---|---|---|---|---|---|---|
| 2007 £'000 |
2006 £'000 |
2007 £'000 |
2006 £'000 |
2007 £'000 |
2006 £'000 |
|
| 4,283 | 8,140 | 73,516 | 38,067 | 302,241 | 229,641 | |