Non-executive directors (NEDs).

Non-executive directors (NEDs).

APPOINTMENT LETTERS

Appointment letters are currently for three years but all directors are subject to annual re-election. Appointments may be terminated by either party without notice.

(XLS:) Appointment letters – Non-executive directors

NED

Date of initial appointment

Current letter of appointment start date

Current letter of appointment end date

John Stewart

January 2010

May 2013

May 2016

Henry Staunton

May 2004

May 2010

Retired AGM 2013

Rudy Markham

October 2006

May 2013

May 2015

Nick Prettejohn

November 2010

November 2010

Stepped down from the Board on 6 June 2013

Mike Fairey

May 2011

May 2011

May 2014

Dame Clara Furse

June 2009

June 2012

Stepped down from the Board 1 May 2013

Stuart Popham

July 2011

July 2011

July 2014

Julia Wilson

November 2011

November 2011

November 2014

Lindsay Tomlinson

March 2013

March 2013

March 2016

Lizabeth Zlatkus

December 2013

December 2013

December 2016

Copies of the non-executive directors’ appointment letters are available for inspection at the company’s registered office.

The following table sets out the key elements of remuneration and policy for NEDs.

APPROACH TO FEES

OPERATION

OTHER ITEMS

Further details of NED fees for 2013 can be found in the annual report on remuneration.

Fees for the chairman and non-executive directors are set at an appropriate level to reflect:

  • The time commitment required to fulfil the role
  • The responsibilities and duties of the positions; and
  • Typical practice in the FTSE 100 and amongst other financial institutions.

Fees for non-executive directors are reviewed at regular intervals by the executive directors. Fees for the chairman are reviewed at regular intervals by the Remuneration Committee. No-one is involved in the discussion of their own fee.

Fees are subject to the aggregate limit in the company’s Articles of Association. Any changes in this limit would be subject to shareholder approval.

Our NED fees policy is to pay:

  • A base fee for membership of the Board.
  • A committee attendance fee if the non-executive sits on two or more Board committees (currently not including the Nominations committee).
  • Additional committee chairmanship and SID fees to reflect the additional responsibilities and time commitments of the role.

The chairman receives an inclusive fee for the role.

Additional fees for membership of a committee or chairmanship or membership of subsidiary boards or other fixed fees may be introduced if justified by time or commitment.

The chairman and NEDs are not eligible to participate in any benefit plans or the AVP or the PSP.

Expenses incurred in the performance of non-executive duties for the company may be reimbursed or paid for directly by the company.

Additional support may be provided if the Board feels this is justified such as tax advice if recruited from overseas, work permits or similar.

NEDs are expected to hold the equivalent of one year’s base fee in Legal & General shares to be retained until the end of office. NEDs generally have a proportion of their fees (normally 50%) paid in Legal & General shares until this level is reached. Once this level is reached, they may take all their fee in cash.

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