Key areas of focus for 2012.

Board changes

Summary

Where to find further information

APPOINTMENT OF NIGEL WILSON AS GROUP CHIEF EXECUTIVE

Appointed Group Chief Executive in June 2012.

The Committee determined the remuneration package for his new role.

Implementation Section.

APPOINTMENT OF MARK ZINKULA TO THE BOARD

Appointed to the Board in September 2012.

The Committee determined the remuneration package for his new role.

Implementation Section.

RETIREMENT OF FORMER GROUP CHIEF EXECUTIVE TIM BREEDON

Tim Breedon stepped down from the Board on 30 June 2012.

Details of his remuneration while Group Chief Executive and remuneration paid as an ex-director between 30 June and his retirement are given in the ‘Single figure’ of remuneration and Termination payments sections.

INTEGRATION OF THE INTERNATIONAL BUSINESS

During 2012, a reorganisation took place to fully integrate our international business into our core business areas. To recognise their increased responsibilities, John Pollock and Mark Gregory had an interim base salary increase of approximately 7% with effect from 1 November 2012.

More details of the integration can be found in the What we are doing section of the full Report & Accounts.

Issue

Summary

Where to find further information

SALARY AND BONUS AWARDS

Executive Directors excluding the Group Chief Executive received a base salary increase similar to the budget for employees below Board. The Group Chief Executive’s base salary will remain the same for 2013 with his next review in March 2014.

Implementation Section.

 

Annual bonus awards for 2012 were carefully assessed by the Committee and ranged from 84.8% to 97.9% of the maximum potentials.

Implementation Section.

INCREASED PARTICIPATION IN THE PERFORMANCE SHARE PLAN (PSP)

For 2013, participation in the PSP has been extended to include more participants who hold key roles below the Leadership Group. In addition, key LGIM employees whose roles cross divisions have been included to encourage synergy and teamwork across the Company. For the 2013 PSP there are therefore approximately 55 participants in addition to the executive directors.

 

REVIEW OF TERMS OF REFERENCE

The Committee’s remit had grown over the years to include the individual review of approximately 350 employees below Board. During 2012, the Terms of Reference for the Committee were reviewed to clarify its focus on key employees in the Company below Board. These continue to include the Heads of the Control Functions, an oversight of Code staff, roles linked to the delivery of the Group’s strategy, and any other high earners.

More details of the review can be found in the Governance and approach section.