The long-standing policy of allowing executive directors to hold
external non-BAE Systems-related non-executive directorships with
the prior approval of the Committee will continue. The Committee
considers that external directorships provide the Company's
senior executives with valuable experience that is of benefit to
BAE Systems. It is also considered appropriate for BAE Systems
to contribute to the pool of non-executive expertise available for
the benefit of the wider business community, thereby reciprocating
the benefit that it in turn has received from other organisations
which have permitted members of their senior management teams
to serve on the BAE Systems Board. The Committee believes that it is reasonable for the individual executive director to retain
any fees received from such appointments given the additional
personal responsibility that this entails. Such fees retained by the
executive directors in 2008 for the period in which they served
on the BAE Systems Board were as follows: Ian King £32,691;
George Rose £82,500; and Mike Turner £49,785 plus grants
of Deferred Stock Units to the value of £72,766.