In order to further align the interests of the executive directors and shareholders, the executive directors are required to build a significant personal shareholding in the business. The Group Chief Executive is expected to build a holding of shares valued at twice salary while the other executive directors are expected to build towards a holding valued at one times their salary.

As at 31 December 2010, the executive directors’ share ownership against the guidelines were:

Although share ownership guidelines are not contractually binding, the Committee retains the discretion to withhold future grants under the PSP if executives do not comply with the guidelines.

At the August 2010 Remuneration Committee meeting it was decided that senior executives below Board level who form the Company’s Leadership Team (approximately 40 positions) should also be encouraged to build a holding of Legal & General shares. Members of the Leadership Team will be encouraged from 2011 to build up a holding equivalent to 50% of salary to help more closely align them to shareholders’ interests.