Boardroom pay rap for Reed

ANGLO-Dutch media group Reed Elsevier faces shareholder hostility at this week's annual meeting over its boardroom pay policy. The generous employment terms for Erik Engstrom, new boss of the Elsevier science and medical publishing arm, are a particular target for their anger.

'The company's remuneration policy is frankly second-rate,' said shareholder advisory group Pirc.

'Engstrom received a guaranteed performance bonus for joining the company, which is nice work if you can get it, and a helpful one-off grant of restricted shares worth £1m.

'Just in case things don't work, he also has a two-year rolling contract during the first year, reducing to one thereafter - a very comfortable arrangement.'

Reed said that it had to compensate Engstrom for 'the loss of long-term incentive benefits' with his previous employer, the venture capital group General Atlantic Partners.