According to reports in the UK press, WPP is planning to ‘refresh’ its Board of Directors, after shareholders voted against a proposed 60% increase in CEO Sir Martin Sorrell's pay package back in June.
Nearly 60% of shareholders rejected
WPP’s executive remuneration recommendations, which included a near £13m deal for Sorrell.
The Telegraph reports that WPP is now searching for several new non-executive directors following shareholder concerns about the Board's independence, and questions about how the compensation committee came to the decision to approve Sorrell’s pay hike.
At the time, Sorrell (pictured) defended his proposed raise, stating in the Financial Times that he deserved the increase, having grown WPP from a staff of two and market value of £1m in 1985, to a £10 billion company today with 160,000 staff in 108 countries.
Last week, WPP reported
a 5.5% increase in like-for-like revenue in the first half to £4.97bn from £4.71bn in the same period last year, and a 7% rise in pre-tax profits to £357.7m. Revenue was up just 1.2% to £1.19bn in its consumer insight division in the first half of the year, while headline operating profit fell slightly to £84m.
The group has also confirmed that following government tax changes, it plans to move its HQ back to the UK from Ireland
Web site: www.wpp.com