Policy on remuneration of Non-Executive Directors

Non-Executive Directors, including the Chairman, do not have service contracts and do not participate in the Group’s pension scheme, annual bonus scheme or long term incentive schemes. Non-Executive Directors have letters of appointment which can be terminated by either party serving six months’ notice. Each appointment is subject to retirement by rotation under the Articles of Association of the Company, and re-election by shareholders, at least once every three years.

Non-Executive Directors are paid a fee which is approved by the Board on the recommendation of the Executive Directors, having taken account of the fees paid in other companies of a similar complexity and the skills and experience of the individuals. The base fee for the Non-Executive Directors is £55,000 but the Chairman and Deputy Chairman (who is also the Senior Independent Director) are paid higher fees to reflect their additional responsibilities. The Chairman receives a fee of £300,000 and the Deputy Chairman receives a fee of £200,000. The Chairman of the Audit Committee and the Chairman of the Remuneration Committee receive an additional fee of £15,000 and £10,000 respectively.