Reed share deal gets grudging support

SHAREHOLDERS of Anglo-Dutch publisher Reed Elsevier grudgingly endorsed a revised share option scheme for executive directors. But a third of those who voted opposed the plan, which would give key executives payouts of up to £8m each if earnings rise by 10% or more.

Shareholders felt the performance criteria for the scheme were too lenient. Andrew Tusa of Deutsche Asset Management demanded that other performance measures be taken into account.

Reed director Rolf Stromberg insisted that the option scheme was not excessive. 'It is seen to be rich by the Netherlands and UK standards but in the US it is barely competitive,' he said.

'We recruit internationally. The company needs to be competitive in what it offers to executives to attract them as well as to retain them,' added Stromberg.

Shareholders complained they had not been informed of the changes. One said: 'The big shareholders know what's going on, but the little ones have difficulty keeping up.'