Pearce says he is working without a contract at Eastlands and does not intend to sign one.
"I have not signed a contract because it is not worth the paper it is written on," Pearce told The Sun.
"There is one, but I've insisted on clauses that would mean I could leave for free and they would not have to pay me if they got rid of me.
"I did not cost anything when I became manager, so why should the club get a million or two if I went somewhere else? By the same token if the club does not want me to be the manager, I don't want a pay-off.
"I'd rather they gave the money to the next manager to spend."
Pearce claims he has an excellent relationship with City chairman John Wardle and is not looking to force the club into handing him a bumper pay hike.
"If the chairman said to me tomorrow 'Do you want more money?' I would say no," he added.
"From the outset he could have offered me much less than I'm earning because I was untried.
"If he offered me more now I would say no because the money he gave me was more than generous.
