Shareholder Rumblings over Sorrell's Pay

According to reports in the UK press, marcoms giant WPP will face a shareholder rebellion over CEO Sir Martin Sorrell's £43m pay package at tomorrow's AGM.

Sorrell (pictured) bought the business in 1985 and built it from a start of two employees to the 100,000 plus it employs today. WPP now comprises companies in the advertising, media, PR, branding, communications, digital and marketing sectors, and also includes the Data Investment Management arm (formerly known as Consumer Insight), which includes TNS, Millward Brown, The Futures Company, and many other specialist companies.

In 2014, Sorrell received a 44% increase in pay, making him the highest-paid FTSE 100 CEO, with a pay package more than twice the size of the second highest earner. According to WPP's annual report, last year he received a £1.1m base salary, a pension contribution of £456k, a short-term bonus of £3.5m, and a long-term incentive plan bonus of £36m. The annual pay package rose by nearly two-thirds the previous year, to £29.8m, from £17.5m in 2012 - with the 2013 figure boosted by a plan linked to the company's share price and performance. In 2012, 59.5% of WPP shareholders had voted against a proposed 60% increase.

The Sunday Times reported yesterday that the firm faces a revolt over the deal, with Standard Life - one of its largest investors - about to issue a 'public reprimand' over WPP's boardroom bonuses. At tomorrow's annual meeting, the insurance giant is expected to publicly confront departing Chairman Phil Lader over Sorrell's pay, while the Express says it expects more than a quarter of investors to refuse backing for the remuneration package and WPP's pay policies.

Sorrell meanwhile has told the Telegraph that he 'makes no apologies' for his large pay packet, saying his earnings are entirely based on performance, directly related to his leadership of the company. 'For failure, fine, I would agree that the figure is high, but this is about performance', he told the newspaper.

Web site: www.wpp.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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