File photo of former Thomson Reuters CEO Tom Glocer.GARY HERSHORN/Reuters
The former chief executive of Thomson Reuters Corp. received a $3.1-million golden parachute in addition to $6.7-million in bonuses last year, annual disclosure forms indicate.
Tom Glocer left the company at the end of last year after a 10-year stint as chief executive, but the documents state he was drawing a salary until the end of March in a "non-executive capacity."
It was a challenging year for the news and information company – its stock price fell almost 40 per cent as the banks and financial institutions it counts among its customer base laid off tens of thousands of employees and its new desktop product for financial clients underwhelmed when it was unveiled.
This led to a $3-billion non-cash goodwill charge in the last quarter, an acknowledgment of the challenges facing the division as the company looks for better ways to get its data terminals and services in front of bankers and traders.
Mr. Glocer was the last senior executive remaining with the company after Reuters Group Plc was acquired by the Thomson family in 2008. The deal created Thomson Reuters, 55 per cent owned by the Thomson family's holding company Woodbridge Co. Ltd. (which also owns a controlling interest in The Globe and Mail).
His base salary for 2011 was $1.6-million, but his compensation rose to $8.3-million thanks to incentive programs and performance-related bonuses. He also received $191,366 for "financial planning advice," according to the documents.
The company praised his record when it announced his departure and promoted chief operating officer James Smith as chief executive officer.
"Tom will be remembered as the individual who turned around Reuters 10 years ago, led the company to growth and guided its sale to form Thomson Reuters," chairman David Thomson said.
Mr. Smith, meanwhile, saw his compensation increase by 52 per cent in 2011. His $1-million base salary held steady from the year before, but $7.1-million in share-based awards helped push his total compensation to $10.5-million.
He was also given $15,070 for "tax and financial planning advice" and credited $26,337 for "the value of personal use of a corporate aircraft."
His salary will jump to $1.6-million in 2012, and he will be eligible for an annual incentive award of up to 200 per cent of his base salary and a long-term incentive award target of 250 per cent.