Introduction

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The following report from, and the recommendations of, the remuneration committee have been approved without amendment by the board for submission to shareholders.

Other than as is specifically indicated in this report, the remuneration committee intends to apply identical policies to each component of executive director remuneration as in the year under review.

Throughout the year under review, the company complied with the provisions of Schedule A of the Combined Code published in June 1998 relating to the design of performance-related remuneration (except where noted below). In preparing this report, the board has followed the provisions of Schedule B of the Combined Code. The contents of this report also comply with the Directors’ Remuneration Report Regulations 2002.

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