Executive Directors

The total remuneration package

Salary

Salary reflects the role and the sustained value of the incumbent in terms of skills, experience and contribution in the context of the relevant market.

Salaries are reviewed annually in the context of the competitiveness of total remuneration. Any increases typically take effect on 1 January.

Notwithstanding Reed Elsevier’s strong performance during 2008 and positive outlook for 2009, in view of the wider economic climate, the Committee decided not to increase the salaries for executive directors with effect from 1 January 2009.

* Joined the Board as CEO-designate on 1 January 2009 and will take on the role of Reed Elsevier CEO on retirement of Sir Crispin Davis in March 2009.

During 2008 Erik Engstrom’s remuneration package was returned to a US dollar base. His previous US dollar-denominated annualised base salary as at 1 January 2007 of US$1,146,600 was increased by 4% reflecting the salary increase that took effect on 1 January 2008 whilst his salary was denominated in sterling.

Reed Elsevier uses the same factors to determine the levels of increase across all employee populations globally: i.e. relevant pay market, skills, experience and contribution. Reed Elsevier operates across many diverse countries in terms of their remuneration structures and practices. Any increases awarded to different employee groups in different geographies reflect this diversity and range of practices. No salary increases are being awarded across the senior management population for 2009, except for promotions or where significant market adjustments are required.