Shareholder Revolt Forecast over £70m Sorrell Deal

After three - relatively - quiet years, City of London analysts believe WPP boss Sir Martin Sorrell will face increased shareholder opposition to his £70m salary and shares package at next Wednesday's Annual General Meeting.

Sorrell (pictured), who is now 71, 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 Kantar Data Investment Management arm (formerly known as Consumer Insight), which includes TNS, Millward Brown, The Futures Company, and many other specialist firms.

In 2014, Sorrell received a 44% increase, bringing his salary package to almost £43m, and making him the highest-paid FTSE 100 CEO, with a pay package more than twice the size of the second highest earner. Last summer, he saw off another shareholder revolt, but after nearly 60% of investors refused to back his salary package in 2012, the proportion has dropped to around a fifth in each of the three succeeding years. In an interview with the Independent newspaper in April, Sorrell claimed he was worth every penny of his multi-million pound remuneration package, saying that the risks he has taken growing WPP over 31 years mean he is entitled to profit from its success.

Analysts are now predicting he will face the biggest pay revolt since 2012 over the £70m pay package, which includes £63m in share options on top of his salary. Shareholder advisory group Pirc has described the salary package as 'highly excessive' and asked investors to vote against the deal; while responsible investment charity ShareAction has questioned whether Sorrell is 'really worth £133 a minute' while urging investors to ask the organisations that invest their savings to reject the pay deal.

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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