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Notes 1-5

For the year ended 31 December 2007

5. Our people

Our staff numbers averaged 84,848 against 77,686 in 2006 and 70,936 in 2005, including acquisitions. Their geographical distribution was as follows:

  2007 2006 2005
North America 23,294 22,477 21,261
UK 8,543 8,484 8,007
Continental Europe 21,367 19,935 18,644
Asia Pacific, Latin America, Africa & Middle East 31,644 26,790 23,024
  84,848 77,686 70,936

Their operating sector distribution was as follows:

  2007 2006 2005
Advertising and Media Investment Management 42,948 41,030 38,084
Information, Insight & Consultancy 11,524 10,869 10,089
Public Relations & Public Affairs 7,167 6,616 5,901
Branding & Identity, Healthcare and
Specialist Communications
23,209 19,171 16,862
  84,848 77,686 70,936


At the end of 2007 staff numbers were 90,182 (2006: 79,352, 2005: 74,631). Including all employees of associated undertakings, this figure was approximately 111,000 at 31 December 2007 (2006: 98,000, 2005: 92,000).

Total staff costs were made up as follows:

  2007
£m
2006
£m
2005
£m
Wages and salaries 2,492.6 2,385.8 2,182.1
Cash-based incentive plans 168.3 176.0 159.0
Share-based incentive plans (note 22) 62.4 70.9 68.6
Social security costs 288.3 281.7 267.3
Other pension costs (note 23) 80.7 81.7 75.6
Other staff costs 515.6 478.3 433.7
  3,607.9 3,474.4 3,186.3
Staff cost to revenue ratio 58.3% 58.8% 59.3%


Included above are charges of £6.5 million (2006: £5.3 million, 2005: £4.9 million) for share-based incentive plans in respect of key management personnel (who comprise the executive directors of the Group). Further details of compensation for key management personnel is disclosed in How we're rewarded.