Pay boom for Thomson Reuters executives

The awards come after a year in which profits and revenues grew ahead of expectations but fears about the health of the financial and professional customers on which it depends also grew.

Tom Glocer, CEO, was granted restricted stock units valued at a potential $26.1 million over five years. The awards are not subject to performance criteria, the FT said.

“Separate cash and stock bonuses, and $757,000 relocation expenses, mean Glocer’s compensation jumped from £2.61 million for his last year at Reuters to $8.91 million for his first at the helm of the enlarged group,” it said.

A spokesman said the rise reflected larger responsibilities, performance achievements and currency swings. A similar one-time grant to Devin Wenig, chief executive of the markets division, was valued at $15.9 million, on top of a $4.54 million compensation package for the year.

Thomson Reuters said the awards for the two former Reuters executives, which exceeded those to former Thomson directors, were in part a reflection of the fact that they could not join Thomson’s defined pension plan for executives, which is now closed to new participants.

The details come amid heated argument about executive compensation, particularly in the Wall Street and City firms served by Thomson Reuters, and after contentious contract negotiations with some editorial staff, the FT said.

“But the company has little to fear from shareholder opposition to the rewards as it is 55 per cent controlled by the Woodbridge Company, which represents the Thomson family’s holding.”

Geoff Beattie, president of Woodbridge, was also granted restricted stock units with a theoretical value of $3.57 million. Niall FitzGerald, former Reuters chairman, received restricted stock valued at $707,000. The two deputy chairmen were architects of the Thomson Reuters deal.

The rewards followed a year in which the group hit the top end of its forecasts, with eight per cent pro forma revenue growth and a 19 per cent increase in underlying operating profit.

Last month it accelerated estimates of integration savings from the merger, raised the dividend and predicted further organic growth in 2009.

Executive salaries will be frozen this year, after Glocer’s basic salary slipped from the sterling equivalent of $1.67 million to $1.55 million.

A compensation committee report said it had aimed to increase the portion of his compensation tied to performance.

The Daily Mail said: “In an age of shrinking banking bonuses, the staggering payout made American Tom Glocer one of the highest earners in corporate Britain last year.

“The 49-year old lawyer hit the jackpot after merging Reuters, where he was chief executive, with North American media conglomerate Thomson.

“An estimated £15m share option package was triggered when the £9bn deal was finally given the green light last March.

“But the gravy train gathered more speed when Glocer pitched up in the US as head of the enlarged data and publishing giant and was handed share options worth over £18m in Thomson-Reuters.”

His basic pay at Reuters was a relatively modest £900,000. Glocer is aiming to cut overheads by nearly £1 billion - in a move that will see him slash jobs at the combined financial markets divisions.

The Mail said Thomson Reuters’ annual report published on Monday offers a tantalising glimpse into the pay and perks commonplace in US boardrooms.

“But his sweeteners could revive painful memories for longstanding shareholders.

“Glocer came under fire over the £230,000 annual rent Reuters used to pay for his London home.

“Reuters shares have lost less than a tenth of their value over the past year, making them among the best performers in the battered media sector.” ■