Pearson

Annual Report and Accounts 2010

Table 5: Movements in directors’ interests in share options

< Previous 24. Table 4: Movements in directors' interests in restricted shares

Shares under option are designated as: a worldwide save for shares; b long-term incentive; and * where options are exercisable.

Date
of
grant
1 Jan 10 Granted Exercised Lapsed 31 Dec 10 Option
price
Earliest
exercise
date
Expiry
date
Date of
exercise
Price on
exercise
Gain on
exercise
Marjorie Scardino
a 8/5/09 1,672 1,672 547.2p 1/8/12 1/2/13
b* 9/5/01 41,550 41,550 1,421.0p 9/5/02 9/5/11
b* 9/5/01 41,550 41,550 1,421.0p 9/5/03 9/5/11
b* 9/5/01 41,550 41,550 1,421.0p 9/5/04 9/5/11
b* 9/5/01 41,550 41,550 1,421.0p 9/5/05 9/5/11
Total 167,872 0 0 0 167,872 £0
Will Ethridge
b* 9/5/01 11,010 11,010 $21.00 9/5/02 9/5/11
b* 9/5/01 11,010 11,010 $21.00 9/5/03 9/5/11
b* 9/5/01 11,010 11,010 $21.00 9/5/04 9/5/11
b* 9/5/01 11,010 11,010 $21.00 9/5/05 9/5/11
b* 1/11/01 14,680 14,680 0 $11.97 1/11/02 1/11/11 18/3/10 $15.40 $50,352
b* 1/11/01 14,680 14,680 0 $11.97 1/11/03 1/11/11 18/3/10 $15.40 $50,352
b* 1/11/01 14,680 14,680 0 $11.97 1/11/04 1/11/11 18/3/10 $15.40 $50,352
Total 88,080 0 44,040 0 44,040 $151,057
Rona Fairhead
a 4/5/07 2,371 2,371 690.4p 1/8/12 1/2/13
b* 1/11/01 20,000 20,000 822.0p 1/11/02 1/11/11
b* 1/11/01 20,000 20,000 822.0p 1/11/03 1/11/11
b* 1/11/01 20,000 20,000 822.0p 1/11/04 1/11/11
Total 62,371 0 0 0 62,371 £0
Robin Freestone
a 9/5/08 1,757 1,757 534.8p 1/8/11 1/2/12
Total 1,757 0 0 0 1,757 £0
John Makinson
a 9/5/03 4,178 4,178 0 424.8p 1/8/10 1/2/11 24/11/10 945.5p £21,755
b* 9/5/01 19,785 19,785 1,421.0p 9/5/02 9/5/11
b* 9/5/01 19,785 19,785 1,421.0p 9/5/03 9/5/11
b* 9/5/01 19,785 19,785 1,421.0p 9/5/04 9/5/11
b* 9/5/01 19,785 19,785 1,421.0p 9/5/05 9/5/11
Total 83,318 0 4,178 0 79,140 £21,755
Total 403,398 0 48,218 0 355,180
Total (£) £21,755
Total ($) $151,057

Note 1: No variations to the terms and conditions of share options were made during the year.

Note 2: Each plan is described below.

a Worldwide save for shares – The acquisition of shares under the worldwide save for shares plan is not subject to the satisfaction of a performance target.

Marjorie Scardino, Rona Fairhead, Robin Freestone and John Makinson hold options under this plan. Details of these holdings are itemised as a.

b Long-term incentive – All options that remain outstanding are exercisable and lapse if they remain unexercised at the tenth anniversary of the date of grant.

Details of the option grants under this plan for Marjorie Scardino, Will Ethridge, Rona Fairhead and John Makinson are itemised as b.

Note 3: Marjorie Scardino contributes US$1,000 per month (the maximum allowed) to the US employee stock purchase plan. The terms of this plan allow participants to make monthly contributions for six month periods and to acquire shares twice annually at the end of these periods at a price that is the lower of the market price at the beginning or the end of each period, both less 15%.

Note 4: The 1,672 share options granted to Marjorie Scardino under the Worldwide Save for Shares plan on 8 May 2009 were inadvertently omitted from the 2009 report.

Note 5: The market price on 31 December 2010 was 1,008.0p per share and the range during the year was 855.0p to 1,051.0p.

Approved by the board and signed on its behalf by

David Arculus Signature
David Arculus Director

7 March 2011