Non-executive director remuneration is approved by the Board as a whole on the recommendation of the chairman and executive directors.
The Company's policy on non-executive director remuneration is based on the following key principles:
It is the intention that this policy will continue to apply for 2010 and subsequent years, subject to ongoing review as appropriate.
The Board reviews non-executive directors' fees periodically to ensure that they remain market-competitive. Additional fees are paid to the chairmen of Board committees and to the senior independent director (SID). Should non-executive directors acquire executive board roles within subsidiaries of the Company, then they might also receive additional remuneration from the relevant subsidiaries on account of these increased responsibilities. Non-executive directors' fees were last increased following a review in December 2005 (and took effect in January 2006). Since that time, it is felt that fee levels have fallen behind the market and the Board has therefore agreed to increase the basic fee to £80,000 per annum (pa) and the fee for the SID to £100,000 pa with effect from 1 January 2010. There will be no change to the fees for Committee Chairmen.