Reuters chief reduces his payoff terms

Tom Glocer, the chief executive of Reuters, has agreed to move on to a one-year contract amid shareholder complaints over executive pay at the news and financial information company.

Mr Glocer was eligible for between one and two years' salary and bonus if he lost his job within four years of joining of the company in 2001. His bonus and salary were worth about £1.4m last year.

"It's basically a goodwill gesture because Tom is aware that people in the UK care about this issue," a company spokesman, Simon Walker, said, adding that Mr Glocer had volunteered to make the change. His contract was due to be reduced to one year by the summer of 2005.

Reuters came under fire from the National Association of Pension Funds at its annual meeting the spring terms over the terms of Mr Glocer's contract. The NAPF advised members to abstain from voting for the group's remuneration report.