43 Related party transactions

There were no material transactions between key management and the Legal & General group of companies. All transactions between the group and its key management are on commercial terms which are no more favourable than those available to employees in general. Contributions to the post-employment defined benefit plans were £69m (2013: £62m) for all employees.

At 31 December 2014 and 31 December 2013 there were no loans outstanding to officers of the Company.

Key management personnel compensation

The aggregate compensation for key management personnel, including executive and non-executive directors, is as follows:

 

2014
£m

2013
£m

Salaries

8

8

Social security costs

2

3

Post-employment benefits

2

Share-based incentive awards

4

4

Key management personnel compensation

16

15

 

 

 

Number of key management personnel

16

18

The group UK defined benefit pension schemes have purchased annuity contracts issued by Society for consideration of £60m (2013: £68m) during the year, priced on an arm’s length basis.

The group’s investment portfolio includes investments in venture capital, property and financial investments which are held via collective investment vehicles. Net investments into associate investment vehicles totalled £5m during the year (2013: £21m). The group received investment management fees of £1m during the year (2013: £2m). Distributions from these investment vehicles to the group totalled £13m (2013: £19m). The prior year comparatives have been restated to reflect the adoption by group of IFRS 10, ‘Consolidated Financial Statements’, which led to the consolidation of investment vehicles previously classified as associates.

During the year, the group injected cash of £77m into its joint venture investment, CALA, in the form of £43m equity and £34m debt. These payments settled the deferred consideration due and facilitated the growth of the company, including the acquisition of Banner Homes. The loans outstanding from CALA total £55m (2013: £17m).

During the year, the group also acquired a preferred equity stake in Pemberton Asset Management Holdings Limited (Pemberton) at a cost of £6m. This represents 40% of the voting rights in the company. The option is available to convert this into ordinary equity at any time in the next five years. A commitment of £194m was also made to Pemberton’s first co-mingled funds, none of which was drawn as at 31 December 2014. An additional commitment of £78m was made to an Legal & General segregated account with Pemberton. As at 31 December 2014, £25m of this was drawn.