Letter from the Chairman of the Remuneration Committee

In making decisions, the Committee takes into consideration its responsibilities to shareholders, external market conditions, the performance of the Company and corporate governance considerations.

General governance

Directors’ Report on Remuneration

Committee meetings and what has been discussed during 2010

This section describes the issues discussed by the Committee during 2010.

Directors’ remuneration for the financial year ended 31st December 2010

General remuneration policy

Remuneration policy for non-executive directors

See non-executive directors’ periods of appointment.

Remuneration package for executive directors

See table of remuneration for 2010.

Summary of key features of executive directors’ remuneration

This table explains each element of their remuneration, its purpose, our policy and how it operates. The table covers salary, bonus, share plans and pension.

Remuneration policy for other senior executives

Share bonus plan (SBP)

Performance share plan (PSP)

This is our long term incentive plan and this section explains the performance criteria.

All employee share schemes

Dilution limits

Share ownership guidelines

Sets out the share ownership guidelines.
200% of base salary for the CEO.
100% of salary for other executive directors.

Directors share interests

Tables show the number of shares our directors hold under each scheme and the share movements over the year.

Benefits

We state the other benefits to which our directors are entitled in line with other employees of Legal & General.

Pension

This section explains the pension schemes our directors are in and tables show their pension entitlement and value. We also explain what happens upon retirement.

Directors’ loans

None of our directors have any loans.

Service contracts

We explain the terms and notice periods.

External appointments

We give details of any external appointments our directors hold. External appointments help to broaden their experience and contribution to the Board.

Independent review

About our advisers and confirmation that they have carried out a satisfactory audit of the Remuneration Committee activities during 2010.