SAR The long-term incentive program was extended by Stock Appreciation Rights in 2004. On April 25, 2004, 100,000 options at an exercise price of €200.00 were issued. The term of the  non-forfeitable option rights is five years as from the date of issue; they may be exercised following a 2-year blocking period at the earliest. An exercise gain arises from the positive difference between the current price of the share given a virtual sale and the exercise price, whereby a minimum exercise gain of 10% and a maximum exercise gain of 50% of the exercise price upon  settlement is defined which applies during and within the scope of the existing employment contract. Comparable programs have been agreed for the years from 2005 to 2008, whereby the  exercise price is determined from the average of closing prices of the rights distribution (on April 25 in each case) during the five preceding days, plus an exercise hurdle of 10%. As of December 31, 2004, 100,000 options which are held by the Board are  outstanding.  Personnel expenses are made up as follows: 21. Personnel Expenses At year-end the company employed a total of 3,910 people  (previous year: 3,189). The annual average number of staff was as follows:  Wages and salaries 124.4 100.2 Social expenditure 18.8 14.8 Expenses for pension schemes and other personnel expenses 14.3 11.6 Total 157.5 126.6 2004 2003 € million € million Marketing 147 130 Sales/Retail 1,726 1,260 Product Management/Development 313 258 Sourcing/Logistics/Production 797 737 Central Units 492 441 Total 3,475 2,826 2004 2003 Foreword | Mission | Management Report | Share | Marketing |  Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management 83