Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
CWA Urges Reuters Shareholders to Oppose Remuneration Proposal
Washington, D.C. -- The Communications Workers of America is alerting shareholders of Reuters Group PLC (LSE: RTR, NASDAQ: RTRSY) that concerns about the company's remuneration policy have been raised by Pensions Investment Research Consultants, a London-based independent provider of corporate governance and other services to pension funds and managers.
In a letter to shareholders, CWA President Morton Bahr and Vice President Linda Foley, who heads The Newspaper Guild-CWA, cited PIRC's concerns about the "potential execessiveness" and poor incentive/reward structure in the Reuters compensation plan. PIRC has recommended that shareholders vote against the policy, listed as Proposal Number 2 for shareholders to consider at the April 17 annual meeting.
Bahr and Foley point out that "shareholders have an interest in ensuring that executive pay is transparent and reflects the performance of the company."
"We are particularly concerned that Reuters' chief executive has seen his bonus pay rise rapidly at a time when the company's share price and profitability have been falling," they wrote.
Bahr and Foley indicated further concern "that Reuters' remuneration policy does not meet with best United Kingdom practice standards to take account of pay and conditions within the company in light of major recent lay-offs and restructuring, as required by the UK Combined Code."
PIRC's report, released today in London, also took issue with Reuters' promise to executives of unusually lucrative liquidated damages arising from the early termination of a service contract, with the result that "in the event of termination, the CEO will remain entitled to all long term share awards as if his employment has not ceased." Such a severance agreement weakens the negotiating position of the Reuters Board should the need to replace senior executives arise, CWA belives.
Bahr and Foley urged shareholders to consider PIRC's recommendation as they take up the shareholder proposals, and to vote before the deadline of April 15, 2003 for ordinary shareholders and April 8 for American Depository Receipt holders.
###
In a letter to shareholders, CWA President Morton Bahr and Vice President Linda Foley, who heads The Newspaper Guild-CWA, cited PIRC's concerns about the "potential execessiveness" and poor incentive/reward structure in the Reuters compensation plan. PIRC has recommended that shareholders vote against the policy, listed as Proposal Number 2 for shareholders to consider at the April 17 annual meeting.
Bahr and Foley point out that "shareholders have an interest in ensuring that executive pay is transparent and reflects the performance of the company."
"We are particularly concerned that Reuters' chief executive has seen his bonus pay rise rapidly at a time when the company's share price and profitability have been falling," they wrote.
Bahr and Foley indicated further concern "that Reuters' remuneration policy does not meet with best United Kingdom practice standards to take account of pay and conditions within the company in light of major recent lay-offs and restructuring, as required by the UK Combined Code."
PIRC's report, released today in London, also took issue with Reuters' promise to executives of unusually lucrative liquidated damages arising from the early termination of a service contract, with the result that "in the event of termination, the CEO will remain entitled to all long term share awards as if his employment has not ceased." Such a severance agreement weakens the negotiating position of the Reuters Board should the need to replace senior executives arise, CWA belives.
Bahr and Foley urged shareholders to consider PIRC's recommendation as they take up the shareholder proposals, and to vote before the deadline of April 15, 2003 for ordinary shareholders and April 8 for American Depository Receipt holders.
###