Annual report and accounts 2008

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

Total shareholder return performance

Below we set out Pearson’s total shareholder return on three bases. Pearson is a constituent of all the indices shown.

First, we set out Pearson’s total shareholder return performance relative to the FTSE All-Share index on an annual basis over the five-year period 2003 to 2008. We have chosen this index, and used it consistently in each report on directors’ remuneration since 2002, on the basis that it is a recognisable reference point and an appropriate comparator for the majority of our investors.

Secondly, to illustrate performance against our sector, we show Pearson’s total shareholder return relative to the FTSE Media index over the same five-year period.

And thirdly, we show Pearson’s total shareholder return relative to the FTSE All-Share and Media indices on a monthly basis over 2008, the period to which this report relates.