Note 24 • Related parties

Identity of related parties

The group has a related party relationship with its subsidiaries (see note 25), its directors and executive officers, and a number of companies related through common key management personnel or ownership interests.

Transactions with key management personnel

The Board of Directors and key management personnel of the Group held beneficial interests in the shares of the Group at 31 December 2010 as follows:

	Number of shares 2010
R. af Jochnick and family	3,973,848
J. af Jochnick and family	4,130,400
Alexander af Jochnick	418,884
Christian Salamon	11,940
Marie Ehrling	300
Lilian Fossum Biner	1,000
Helle Kruse Nielsen	1,000
Anders Dahlvig	4,800
Magnus Brännström	237,960
Jesper Martinsson	211,915
Gabriel Bennet	17,089

The major shareholders, the af Jochnick family and the Stichting af Jochnick Foundation, jointly exercise control over 14,539,133 shares which represents 25.5 percent of the outstanding total shares as at 31 December 2010.

The key management personnel compensation is as follows:

For the year ended 31 December 2010, the members of the Board of Directors (excluding Magnus Brännström who in his capacity as Chief Executive Officer is an employee) received total compensation of €289 (€293). The Chairman received €68 (€68).

For the year ended 31 December 2010, the Chief Executive Officer received total compensation of €1,352 (€2,038), of which €731 (€885) was salary and bonus, €423 (€1,000) share incentive plan, €155 (€112) pension contributions under the pension scheme for senior management, and €43 (€41) other benefits and allowances.

Total compensation to the members of the Corporate Committee, which consists of the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer (excluding the Chief Executive Officer) who were employed in the year ended 31 December 2010, were €1,831(€1,955), which was made up of €952 (€965) in salaries and bonuses, €367 (€727) share incentive plan, €180 (€116) in payments into pension schemes and €332 (€147) of other benefits and allowances.

Other related party transactions

The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or significant influence were as follows:

	Transaction value	Balance outstanding
	Year ended 31 December	As at 31 December
€’000	2010	2009	2010	2009
Services provided by
Credus Management AB	–	5	–	(1)
Expenses and employee costs
incurred on behalf of and
recharged to Medicover S.A.	(1,877)	(1,675)	(242)	(182)
Medicover health care services	342	344	–	–
SRS AB services	585	–	112	–

All transactions with related parties are done on arm’s length basis. During the year ending 31 December 2010, no provision for doubtful debts and expense in respect of bad or doubtful debts due from related parties were recognised.

Credus Management AB, a Swedish company wholly owned by Robert af Jochnick, Chairman of the company, invoiced Oriflame for consultancy fees to Oriflame by employees of Credus, other than Robert af Jochnick and Alexander af Jochnick, who was employed by Credus Management AB.

Administrative and employee costs are incurred on behalf of Medicover Holdings S.A. in connection with the shared office facilities in Waterloo, Brussels. These costs are recharged to Medicover. Jonas af Jochnick is the Chairman of, and a major shareholder in Medicover. Robert af Jochnick is a board member of Medicover. In addition, Medicover has entered into agreements with certain of the Group’s subsidiaries in Poland, Romania, Hungary, the Czech Republic and Estonia to provide private health care benefits to employees.

SRS AB is a company related to one of the Board members. SRS AB provides risk management services.