Table:
| USDm | 2019 | 2018 | 2017 |
| --- | --- | --- | --- |
| Total staff costs |  |  |  |
| Staff costs included in operating expenses | 8.1 | 9.3 | 9.2 |
| Staff costs included in administrative expenses | 37.7 | 36.9 | 34.6 |
| Total | 45.8 | 46.2 | 43.8 |
| Staff costs comprise the following |  |  |  |
| Wages and salaries | 37.2 | 38.1 | 36.4 |
| Share-based compensation | 1.9 | 2.1 | 1.9 |
| Pension costs | 3.5 | 3.3 | 3.1 |
| Other social security costs | 0.9 | 0.6 | 0.3 |
| Other staff costs | 2.3 | 2.1 | 2.1 |
| Total | 45.8 | 46.2 | 43.8 |
| Average number of permanent employees |  |  |  |
| Seafarers | 107.6 | 111.7 | 130.6 |
| Land-based | 313.5 | 302.2 | 286.6 |
| Total | 421.1 | 413.9 | 417.2 |
Paragraphs:
NOTE 3 – STAFF COSTS
Employee information
The majority of the staff on vessels are not employed by TORM. Staff costs included in operating expenses relate to the 108 seafarers (2018: 112, 2017: 131).
The average number of employees is calculated as a full-time equivalent (FTE).
The Executive Director is, in the event of termination by the Company, entitled to a severance payment of up to 12 months' salary.
Question:
How is the average number of employees calculated?
Answer: as a full-time equivalent (FTE)