Policy on directors’ service contracts, notice periods, termination payments and external appointments

The Company’s policy on the duration of directors’ service contracts is that no executive directors have fixed-term contracts and the notice period for each is shown in the table below. None of the contracts of head office executive directors contain liquidated damages provisions. There were no payments in 2008 in respect of termination of employment of any executive director.

Executive director Effective from Notice period
Sir Martin Sorrell 19 Nov 2008 “At will”
Paul Richardson 19 Nov 2008 12 months
Mark Read 19 Nov 2008 6 months

Executive directors are permitted to serve as non-executives on the boards of other organisations. If the Company is a share owner in that organisation, non-executive fees for these roles are waived. However, if the Company is not a share owner in that organisation, any non-executive fees can be retained by the office holder.