Reuters' chief Tom Glocer has bowed to pressure from investors and given up part of his generous contract entitlements.
In a statement, the news and information group says Glocer has forfeited a potential payout of more than a year's salary and bonus if his contract of employment is terminated before July 2005. The clause was written in to Glocer's original contract terms in 2001.
Under current terms and conditions Glocer earns about £1.4 million in annual salary and bonuses. Investors have repeatedly criticised the generous pay-outs to Reuters' executives while the company's share price languishes.
The issue came to a head at the company's annual general meeting in April as Glocer pushed through a massive cost-cutting programme involving the termination of some 3000 jobs. The National Association of Pension Funds urged its member to abstain from approving the firm's remuneration report.