Fees for non-executive directors are determined by the full board having regard to market practice and within the restrictions contained in the company’s Articles of Association. Non-executive directors receive no other pay or benefits (other than reimbursement for expenses incurred in connection with their directorship of the company) and do not participate in the company’s equity-based incentive plans. With effect from 1 July 2010, the structure and fees are as follows:
| Fees payable from 1 July 2010 | |
|---|---|
| Non-executive director | £65,000 |
| Chairmanship of audit committee | £25,000 |
| Chairmanship of remuneration committee | £20,000 |
| Membership of audit committee | £10,000 |
| Membership of remuneration committee | £5,000 |
| Senior independent director | £20,000 |
A minimum of 25% of the basic fee is paid in Pearson shares that the non-executive directors have committed to retain for the period of their directorships.
Non-executive directors serve Pearson under letters of appointment and do not have service contracts. There is no entitlement to compensation on the termination of their directorships.