8 Employees including Directors

Amounts included above relating to the UK cylinder liner manufacturing operation are wages and salaries £9 million (2006 – £13 million), post-employment costs £1 million (2006 – £1 million) and social security costs £1 million (2006 – £1 million).

Key management

The key management of the Group comprises GKN plc Board Directors and the members of the Group’s Executive Committee during the year and their aggregate compensation is shown below. Details of Directors’ remuneration are contained in the Directors’ remuneration report.

Salaries and short term employee benefits comprises annual salary, benefits in kind and amounts accrued in respect of short term variable remuneration schemes. Details of the Directors’ short term variable remuneration schemes are set out in the remuneration report. Other members of key management participate in schemes based on the achievement of profit and cash targets and which are payable in cash. The amount outstanding at 31 December 2007 in respect of annual short term variable remuneration was £3 million (2006 – £2 million). Post-employment benefits represent the charge to trading profit under IAS 19 attributable to key management arising in the year and the attributable cost of post-employment medical benefits. Termination benefits include redundancy, pension augmentations and ex gratia payments arising in connection with loss of office and termination of employment with the Group. Share-based payments represents the annual charge attributable to key management in respect of their participation in the Group’s share-based remuneration arrangements; details of the nature of these arrangements are set out in note 9 and in the Directors’ remuneration report. Total awards made or shares granted in the year to key management in respect of these arrangements were:

7,141 options were exercised by key management during the year (2006 - 8,056) at an average exercise price of 230p, whilst 2,992,479 options lapsed (2006 - 2,364,675).