Continued

The initial fixed term of appointment is usually six years subject to review by the Company after three years and to re-election by the shareholders at least once every three years.

Retirement benefits
Executive directors participate in the Company's Inland Revenue approved funded occupational pension scheme.

The main benefits to executive directors, who contribute a percentage of their salaries to the scheme each year, are:

• an accrual rate of 1/30 for each year of pensionable service

• life assurance cover of four times pensionable salary

• pensions to spouse and dependent children payable on death

All executive directors are subject to the Inland Revenue earnings cap on the amount of salary which may be treated as pensionable. The Company has undertaken to provide benefits on an unfunded basis to Philip Brown equivalent to the entitlements which cannot be provided by the Company's scheme.

The normal pension age for Geoff Gaywood is 65 and, for Philip Brown and Brian Taylorson, is 60.

Directors' retirement benefits table

	Salary supplements	Salary supplements	Accrued benefits	Increase in accrued benefits		Transfer value of increases in accrued benefits
	2003	2002	31.12.03	2003		2003
	£'000	£'000	£'000	£'000		£'000
Executive
Geoff Gaywood	132	122	7	3		52
Brian Taylorson	60	44	7	3		53
Philip Brown	-	-	95	8		137
	192	166	109	14		242

	Total transfer value at	Total transfer value at	Increase in transfer value less directors' contributions	Increase in accrued benefits (including inflation)
	01.01.03	31.12.03	2003	2003
	£'000	£'000	£'000	£'000
Executive
Geoff Gaywood	66	132	61	3
Brian Taylorson	53	131	69	3
Philip Brown	1,280	1,664	378	11
	1,399	1,927	508	17

Notes:
Geoff Gaywood joined the Company's scheme on 1 December 2001 and the Company has agreed to pay £50,000 per annum into the scheme to fund the cost of providing pension benefits linked to his retirement age of 65.
Accrued benefits for Philip Brown include the value of unfunded unapproved retirement benefits arrangements.
All transfer values have been calculated on the basis of actuarial advice in accordance with Actuarial Guidance Note GN11. The transfer value of the increase in accrued benefits discloses the current value of the increase in accrued benefits that the director has earned in the year,whereas the increase in transfer value less directors' contributions discloses the absolute change in transfer value and includes the change in value of the accrued benefits resulting from market volatility affecting the transfer value at the start of the year as well as the additional value earned in the year.

Non-executive directors are not entitled to retirement benefits.

Directors' remuneration report continues on the next page >
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