Brass for the brass

Chief financial officer Robert Daleo, 59, received $14 million. James Smith, 49, president and chief executive of the professional division, took home $5.2 million.

All three executives received a significant part of their compensation in the form of one-time stock option grants aimed at providing performance incentive.

The figures are disclosed in Thomson Reuters’ annual report published on Monday.

The company is one of the few that managed to avoid getting caught in the financial meltdown that claimed so many victims across the economic spectrum, reporting stellar results for 2008, and it is compensating its executives accordingly, the online Financial Post reported.

"Our overall philosophy regarding executive compensation is to pay for performance," the company’s Management Information Circular stated. "We believe this drives our management team to achieve higher levels of results for the benefit of Thomson Reuters and our shareholders."

In 2008 Q4, Thomson Reuters reported net income of $565 million, or 79¢ a share, compared with $432 million, or 67¢ a share.

The largest component of Glocer's pay package was a one-time grant of 700,000 restricted share units that will vest 20 per cent each year for five years providing performance goals are met. His "normal annual compensation" came in at $8.9 million.

Glocer holds 650,231 Thomson Reuters PLC shares.

Daleo went home with $6 million in normal annual compensation and  Smith received $5.2 million.

Less than 20 per cent of the total take-home of top executives is described as base salary. The rest is a mix of cash and stock incentives, pension entitlements and "other" compensation.

Financial Post noted that disclosure of executive compensation comes at a time when companies around the world are under pressure from shareholders to keep a lid on management pay.

Thomson Reuters said it expects higher revenues this year despite continuing turmoil on financial markets thanks to diversification into developing countries that are still experiencing growth.

Shares in Thomson Reuters declined 1.43 per cent to 1510 pence on the London Stock Exchange. Despite considerable volatility, the shares are trading at about the same level as they were at the end of March 2008, Financial Post noted. ■