Executive directors’ service contracts

The service contracts of the executive directors are terminable by the company on two years’ notice (except for Jean-Claude Marchand whose contract is terminable by the company on one year’s notice). The committee considers these notice periods appropriate having regard, amongst other things, to the length of the executive directors’ service to the company, collectively and individually, and to the substantial knowledge gained thereby of the company and its business.

If an executive director’s contract is terminated by the company, the benefits for which the company is liable may vary depending on his age and length of service. Any termination payment will not exceed twice his salary and benefits, plus retention of long-term incentive plan awards held for more than 18 months, entitlement under the rules of the share option plans and enhanced early retirement benefits under the company’s pension plans. Jean-Claude Marchand’s service contract is written under Swiss law. If the contract is terminated under normal circumstances, he will be entitled to two years salary plus all other benefits.

It is the Board’s policy that executive directors, in the interests of their development to the benefit of Reuters, may serve as non-executive directors on the boards of other companies and may each, as a general rule, retain remuneration from such appointments.