The committee’s normal policy is to review the base salaries of the executive directors and other members of the Pearson Management Committee taking into account general economic conditions and the wider pay scene, the level of increases applicable to employees across the company as a whole, the remuneration of directors and executives in comparable companies and individual performance.
Before the base salaries and remuneration packages for the Pearson Management Committee are set for the coming year, the committee considers a report from the chief executive and director for people on general pay trends and pay increases across the company and an assessment by the Committee’s independent advisers of remuneration relative to the market.
For 2011, the company has reviewed or is reviewing salaries for employees taking into account the location and economic conditions of each business as it did for 2010. For executive directors and other members of the Pearson Management Committee, we have reviewed base salaries consistent with the policy and process set out above. Full details of the executive directors’ remuneration for 2011 will be set out in the report on directors’ remuneration for 2011.
For 2010, with the exception of one slightly higher increase, the executive directors and other members of the Pearson Management Committee received increases of broadly 2% in line with the general level of increases elsewhere across the company. Full details of the executive directors’ 2010 remuneration are set out in table 1.