The head of Reuters is dropping the controversial two-year payoff in his contract after pressure from shareholders.
Chief executive Tom Glocer has come under fire for his lucrative remuneration deal, which entitles him to two years' worth of salary – over £2 million ($3.4m; €2.9m) – should he be sacked. Analysts consider best practice to be a one-year golden goodbye.
According to Reuters, Glocer – who has headed the media firm for nearly two years – has agreed to scale back the payoff as a "goodwill gesture" to shareholders, almost a quarter of which voted against the board's rewards package at April's annual general meeting.
Glocer is not alone in facing shareholder pressure over his remuneration deal. WPP Group's Sir Martin Sorrell has been criticised for his three-year rolling contract [WAMN: 01-Jul-03], while Charles Allen (boss of British TV firm Granada) may sacrifice his two-year payoff to appease angry investors [WAMN: 28-Oct-03].
Data sourced from: MediaGuardian.co.uk; additional content by WARC staff