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

Non-executive directors

Fees for non-executive directors are determined by the full board having regard to market practice and within the restrictions contained in the company’s Articles of Association. Non-executive directors receive no other pay or benefits (other than reimbursement for expenses incurred in connection with their directorship of the company) and do not participate in the company’s equity-based incentive plans.

There were no changes in the structure and level of non-executive directors’ fees in 2008. With effect from 1 July 2007, these were as follows:

  Fees payable from 1 July 2007
Non-executive director £60,000
Chairmanship of audit committee £20,000
Chairmanship of personnel committee £15,000
Membership of audit committee £10,000
Membership of personnel committee £5,000
Senior independent director £15,000

A minimum of 25% of the basic fee is paid in Pearson shares that the non-executive directors have committed to retain for the period of their directorships.

Terry Burns also receives a fee in respect of his non-executive directorship of Edexcel.

Non-executive directors serve Pearson under letters of appointment and do not have service contracts. There is no entitlement to compensation on the termination of their directorships.