Report on directors’ remunerationSub‐section report on directors’ remuneration

Base salary

Our normal policy is to review salaries annually consistent with the way we benchmark pay and taking into account the approach to pay across the company as a whole.

The committee has reviewed executive directors’ base salaries for 2009. In the light of the prevailing economic conditions and consistent with the action taken across the company to control costs and minimise job losses, there will be no increases in base salary for the executive directors and other members of the Pearson Management Committee for 2009. Full details of the executive directors’ 2009 remuneration will be set out in the report on directors’ remuneration for 2009.

For 2008, there was a normal review of base salaries. The increases in base salary with effect from 1 January 2008 for the executive directors are set out in table 1. In the case of the chief financial officer, the committee concluded that the increase was justified to bring his salary up to competitive market levels following his appointment in 2006.