Other information relating to directors’ remuneration

External appointments

The company considers that certain external appointments can help to broaden the experience and contribution to the Board of the executive directors. Any such appointments are subject to annual agreement by the group and must not be with competing companies. Subject to the group’s agreement, any fees may be retained by the individual. However, they received no fees for the below appointments.

External appointments held in 2014 are shown below:

 

Role and organisation

Fees

Nigel Wilson

Director of the ABI until August 2014.

Nil

John Pollock

Sat on the FCA Practitioner Panel until January 2014.
Sits on the ABI Long Term Savings & Life Insurance Committee.
Non-executive director of CALA 1 Limited and CALA Group (Holdings) Limited.

Nil

Mark Gregory

Director of Westdown Park Management Company Limited.

Nil

Mark Zinkula

Sat on the ABI advisory panel until August 2014.
Currently on board of The Investment Association.

Nil

Total shareholder return (TSR)

The chart shows the value, as at 31 December 2014, of £100 investment in Legal & General shares on 31 December 2008, compared to £100 invested in the FTSE 100 on the same date. The other points plotted are the values at the intervening financial year-ends. The FTSE 100 Index was chosen as the company is a member of this index.

TOTAL SHAREHOLDER RETURN (AS AT 31 DECEMBER 2014)
Total shareholder return (as at 31 December 2014) [Legal & General: 2008: 100, 2009: 111, 2010: 139, 2011: 155, 2012: 232, 2013: 371, 2014: 433]; [FTSE 100: 2008: 100, 2009: 127, 2010: 143, 2011: 140, 2012: 154, 2013: 183, 2014: 184] (line chart)

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Chief executive – historic remuneration information

The table below shows the remuneration of the group chief executive in place at the time over the same period.

Year

Name

Group chief executive single figure of total remuneration
(£’000)

Annual variable element against maximum opportunity

PSP vesting rates against maximum opportunity

1.

Tim Breedon retired as group chief executive on 30 June 2012 and Nigel Wilson took over from that date having been the chief financial officer.

2.

The 2009 PSP vested in full in 2012. However, no PSP is shown in the figure for Nigel Wilson as, while he received the PSP, it vested during the time he was CFO.

3.

The 2009 PSP vested in full in 2012. The PSP figure that vested for Tim Breedon is shown in his figure as it vested during the time he was group chief executive.

2014

Nigel Wilson

4,213

90.67%

100%

2013

Nigel Wilson

4,072

93.10%

100%

20121

Nigel Wilson
Tim Breedon

898
3,280

96.00%
84.80%

0% – note 2
100% – note 3

2011

Tim Breedon

2,325

79.58%

16.6%

2010

Tim Breedon

1,526

89.98%

0%

2009

Tim Breedon

1,999

80.00%

0%

Percentage change in remuneration of director undertaking the role of group chief executive

2014 over 2013

 

Change to base salary %

Change to benefits %

Change in AVP %

Group chief executive

7.78%

21.04%

27.75%

Comparator group

2.62%

2.62%

11.59%

This year we have changed the comparator group from the senior UK population to the whole UK employee population. This group has been chosen because it includes a wider cross section of the group’s employees. The increase in benefits for the group chief executive reflects an increase in the value of dividends received during the period. The increase in benefits for the employee comparator group relates to salary increases.

Relative importance of spend on pay

The chart below shows the relative importance of spend on pay compared to shareholder dividends and profit for the year. Profit has been shown because it is a KPI of the business. No share buy backs were made in 2013 or 2014.

Relative importance of spend on pay [Dividends: 2013 £550m, 2014 £668m, 21% increase]; [Retained profit: 2013 £906m, 2014 £992m, 9% increase], [Expenditure on pay: 2013 £630m, 2014 £695m, 10% increase] (bar chart)

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Notes
The profit figure for 2013 has been restated to reflect the adoption by the group of IFRS 10, the impact is to increase the profit by £10m. The profit figures are taken from the Consolidated Income Statement. In addition, expenditure on pay includes a full year’s worth of employee costs for Cofunds in 2014 versus seven months in 2013.

Payments to past directors (audited)

There were no payments made to past directors in 2014.

Payments for loss of office (audited)

There were no payments for loss of office made in 2014.

Total shareholding of executive directors (audited)

 

Type

Owned outright/vested shares


Subject to deferral/holding period

Total vested and unvested shares (excludes any shares with performance conditions)

Subject to performance conditions

Nigel Wilson

Shares

2,900,680

464,764

3,365,444

0

 

ESP

7,554

3,136

10,690

0

 

Options

0

0

0

3,007,480

 

 

 

 

 

 

John Pollock

Shares

2,092,499

370,990

2,463,489

0

 

ESP

27,208

5,862

33,070

0

 

Options

0

11,029

11,029

1,859,703

 

 

 

 

 

 

Mark Gregory

Shares

1,860,319

304,644

2,164,963

0

 

ESP

25,993

5,788

31,781

0

 

Options

0

0

0

1,856,308

 

 

 

 

 

 

Mark Zinkula

Shares

402,259

315,372

717,631

0

 

ESP

0

0

0

0

 

Options

0

0

0

1,425,191