Report of The Board in relation to remuneration policy and practice
Total shareholder return
This chart shows the value of £100 invested in HBOS on 31 December 2002 compared with the value of £100 invested in the FTSE 100 Index from the same date. To produce a “fair value”, each point is a 30-day average of the return index.
10.3.9 Statutory performance graph
The following graph illustrates the Group’s TSR performance compared to that of a “broad equity market index” over 2003-2007. As HBOS has been a constituent of the FTSE 100 since inception and as performance against sector companies is illustrated in Chart 1, the Group believes that the FTSE 100 is a suitable comparator index to use for the purposes of this graph to satisfy regulatory requirements.
Signed on behalf of the Board of Directors
Karen Jones
Chair, Remuneration Committee
26 February 2008