Executive directors’ salaries

In setting annual salary levels the committee has been assisted by reports from independent professional consultants. It compares Reuters remuneration packages with those for jobs of similar type and seniority in relevant national and international companies. For the purpose of each year’s comparison the committee has used large international companies from the Financial Times Stock Exchange 100 index (FTSE 100). The comparisons consider the relative size of each company in terms of sales, profits and number of employees, its market capitalisation, the complexity of its operations and the international spread of its business. It also considers, inter alia, the company’s operating performance in the previous year and the UK inflation rate over the same period. During its deliberations the committee has had regard to salary levels in other countries where this is relevant for any non-UK director or senior manager.