The Remuneration Committee currently comprises the three Non-executive Directors and is chaired by Viscount Asquith, who was appointed Chairman of the committee on 26 June 2007 upon the resignation of Mr John Mapplebeck. The Company’s Chairman, Lord Fraser, is included on the Committee to meet its objective of being comprised of three members. The Chief Executive Officer attends meetings by invitation.

The Remuneration Committee which has terms of reference agreed by the Board and available to shareholders on request, meets at least twice a year, to assist the Board in determining the remuneration arrangements and contracts of the Directors and senior employees.

During 2007, the Remuneration Committee met three times with each of the members attending each of the meetings held whilst they were members.

No Director is involved in deciding his own remuneration.

The report of the Directors’ remuneration, which involves details of the Directors’ interest in options together with information on service contracts, is set out on pages 44 to 50.

The Remuneration Committee has reviewed the Revised Combined Code, specifically Section B that addresses the level, make-up and procedural aspects of remuneration.

The Remuneration Committee considers that it complies with all the provisions and practices identified with the exception of provision (B2.2) concerning the setting of the Chairman’s remuneration for the reasons listed above.