Performance-related share plan

Reuters has another performance-related share plan for senior executives not participating in the long-term incentive plan. Under this plan, the performance-related share plan, awards have been made to up to 600 executives each year. The rules for vesting are substantially the same as those currently operating for the long-term incentive plan, except that prior to the 1998 award, share rights become exercisable immediately upon crystallisation at the end of three years. Accordingly, rights to 452,363 shares (25% of the total grant) relating to the 1995 award vested on 1 January 1998 and are exercisable through the end of 2001, when they expire. No rights vested on 1 January 1999 in relation to the 1996 award. Commencing with the 1998 award, the rules for this plan have been changed to permit participants to extend the measurement period for each award through to the end of year five.

Participants in the 1998 award received rights to a total of 1.9 million shares (1997 – 1.3 million, 1996 – 1.6 million) and the costs charged against 1998 profit amounted to £1.0 million (1997 – £1.7 million, 1996 – £5.6 million). The 1998 charge is net of a credit of £8.1 million relating to lapsed 1996 awards. Costs are based on the total cost of shares purchased by the ESOTs to match awards.