Reuters chief enjoys £5.5m pay bonanza

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The Independent Online

Tom Glocer, the chief executive of the financial information giant Reuters, enjoyed a pay bonanza last year, collecting £2.3m in cash and gaining from share awards that are already £3.2m in profit.

Tom Glocer, the chief executive of the financial information giant Reuters, enjoyed a pay bonanza last year, collecting £2.3m in cash and gaining from share awards that are already £3.2m in profit.

Mr Glocer, whose "Fast-Forward" restructuring programme involves the sacking of 3,000 staff, is credited in the City with turning around Reuters' fortunes - along with a recovery in the company's markets.

An American lawyer by background, Mr Glocer, 45, picked up a £1.22m bonus for last year. That was on top of basic pay of £816,000 and benefits worth £289,000. He also received a pension contribution worth a quarter of his base salary.

In addition, he was awarded 544,094 shares under Reuters' Long-Term Incentive Plan (LTIP) - shares he does not have to buy and which vest from January 2007 - that are worth £2.27m at last night's closing share price of 416.5p.

He was also given two tranches of shares under the Directors' Share Option Plan (DSOP). The first of these, which can be exercised from February 2007, was 789,430 shares with an exercise price of 407p - this award is currently £74,996 in the money.

The second DSOP award, of 1,000,928 shares at 321p is £860,798 in profit. It can be exercised from August 2007.

A spokesman for Reuters said that all the share option awards were dependent on the company hitting future performance targets. For the maximum vesting of LTIPs, the company must be in the top quartile of FTSE 100 performers, for "total shareholder return", over three years. For the DSOP awards, Reuters needs to deliver "significant" earnings per share growth over three years.

He added that last year Reuters was the top performer in the whole FTSE 100 in terms of total shareholder return. In 2004, the company's profits soared 52 per cent to £198m.

Mr Glocer, chief executive since July 2001, has improved levels of customer service at Reuters and revamped the company's product range, slimming and making its offering more competitive.

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