Reuters roasted over boardroom pay at stormy AGM

Reuters, the embattled media and financial information group, was yesterday given a hefty rap across the knuckles by irate private investors who used its annual general meeting to protest against the £1.7m pay package of the company's chief executive, Tom Glocer.

About two shareholders to one at the meeting voted against Reuters' remuneration report, under which Mr Glocer received a £610,000 bonus last year despite the collapse of the company's share price and the sacking of thousands of its employees.

Some institutions also used their votes to protest at the payouts to Reuters' top executives, with nearly a quarter of the votes cast before yesterday's meeting in Bloomsbury, London, opposing the remuneration report. In total the report passed with the support of 77 per cent of the votes.

Sir Christopher Hogg, Reuters' chairman, confirmed the widespread speculation that he would retire from the business. He said the company had taken advice on Mr Glocer's package and added that it reflected his recruitment from the US, where executives are paid more generously than in the UK.

However, after a meeting in which Sir Christopher was subjected to two hours of angry speeches from shareholders, he admitted: "Of course we might have got it [Mr Glocer's pay] wrong, we're not infallible."

Sir Christopher, who has been chairman for almost 18 years, hinted that Reuters' remuneration committee would make the criteria for directors' pay more stringent, to better reflect the pain that Reuters' investors and staff have felt in the past few years.

"I take this opportunity to affirm that we have taken good note of the points made and will bear them in mind hereafter," he said. Sir Christopher, 66, added that Reuters' board has begun the search for his successor. "I am confident the board will be able to identify who that will be before next year's AGM," he said.

The board's attempts to make an upbeat statement about Reuters' prospects fell on dear ears. Ken Colvert, a private shareholder and a retired economist, told Mr Glocer his presentation on Reuters' planned route back to health was "bland". He added that the provision to pay Mr Glocer a maximum of £2.2m if he was ousted from the company was "offensive".

The sentiment was echoed by many others. One told the assembled board – which includes veterans of the City such as Niall Fitzgerald, chief executive of Unilever and Sir John Craven, chairman of Lonmin – that "things are being run for the benefit of directors, not the other way round".

Martin Simons, another private shareholder, upbraided Roberto Mendoza, who is a member of Reuters' remuneration committee and is thought by some to be a credible successor to Sir Christopher.

Mr Simons also had cross words for Brandes Investment Partners, Capital Group and Franklin Templeton Investments, the three American investors which own 30 per cent of Reuters but did not appear to be at the AGM. "Where are they? They should be here to hear what other shareholders have to say," he said.