Reuters is cutting costs and jobs to regain its market edge

Mr Glocer is giving up the right to a payout of more than a year's salary - as well as a sizable bonus - if he is sacked before 2005, effectively reducing the term of his contract to one year.

Reuters says the move is a "goodwill gesture" undertaken voluntarily by Mr Glocer whose lavish employment terms - worth around �1.43m last year - raised concerns among institutional investors.

Pension funds and private shareholders saw the contract as executive excess in the face of an underperforming share price and declining revenues.

Mr Glocer's remuneration package was the focus of unrest at Reuters's annual shareholder meeting in April.

Sharing the pain

Mr Glocer is spearheading an aggressive restructuring campaign dubbed "Fast Forward" at Reuters, which aims to cut costs by �440m ($730m) by 2005 and is expected to cost at least 3,000 jobs.

The overhaul was Reuters' response to a financial nosedive triggered by tumbling stock markets and an aggressive challenge from main rival Bloomberg in the core business of financial data provision.

Reuters earlier this week reported a 10.9% fall in subscription revenues in the third quarter, a little better than the 11.4% forecast.

WIth the structural shake-up cutting into staff and morale Mr Glocer could not afford to be seen to keep a "fat cat" contract.