Report on directors' remuneration
Notes contentsShareholding of executive directors
The committee expects executive directors to build up a substantial shareholding in the company in line with the policy of encouraging widespread employee ownership and describes separately here both the number of shares that the executive directors hold and the value expressed as a percentage of base salary.
The current value of the executive directors' own shares based on the middle market value of Pearson shares of 912.0p on 26 February 2010 (which is the latest practicable date before the results announcement) against annual base salaries in 2009 is as follows:
Own shares | Number of shares | Value (% of base salary) |
---|---|---|
Marjorie Scardino | 824,124 | 791% |
Will Ethridge | 262,988 | 375% |
Rona Fairhead | 270,982 | 488% |
Robin Freestone | 118,996 | 241% |
John Makinson | 474,581 | 824% |
In addition, the executive directors have prospective holdings as a result of restricted shares that have vested and are held pending release. The current value of these shares before any withholdings is as follows:
Restricted shares | Number of shares | Value (% of base salary) |
---|---|---|
Marjorie Scardino | 640,590 | 615% |
Will Ethridge | 183,938 | 263% |
Rona Fairhead | 233,298 | 420% |
Robin Freestone | 130,113 | 264% |
John Makinson | 181,169 | 315% |
The size of these holdings, the volatility of the stock market and the share retention features that already exist in our long-term incentive plans means that we do not prescribe a particular relationship of shareholding to salary.
No executive director sold shares during the year other than to satisfy income tax liability on the release of restricted shares.