Annual report and accounts 2012

Staff costs

OAO Severstal and Subsidiaries
Notes to the Consolidated Financial Statements
5. Staff costs

for the years ended December 31, 2012, 2011 and 2010
(Amounts expressed in thousands of US dollars, except as otherwise stated)

Employment costs were as follows:

 Year ended December 31,
Wages and salaries(1,586,361)(1,455,418)(1,237,287)
Social security costs(479,263)(427,759)(217,946)
Retirement benefit service costs(4,856)(4,107)(5,152)

Key management’s remuneration for the year ended December 31, 2012, consisting of salaries and bonuses, totalled US$ 38.1 million (2011: US$ 43.0 million; 2010: US$ 33.4 million). Additionally, in 2012, provision for their long-term incentive programmes was accrued in the amount of US$ 16.1 million (2011: US$ 34.2 million; 2010: US$ 19.4 million). This provision is subject to further adjustments, depending on a range of the Group’s and its industry peers’ financial indicators.