WPP founder Sir Martin Sorrell is to receive shares worth around £2.1m from the group's executive performance bonus scheme, nearly a year after leaving the company amid claims of possible misuse of company assets and 'personal misconduct'.
At WPP's AGM held last June, nearly a third of WPP's shareholders rejected the group's remuneration report, which included the Board's decision to give Sorrell (pictured) a long-term share award of up to £20m over the next five years. After a legal consultation, WPP's remuneration committee agreed that there was no reason to withhold Sorrell's bonus, and yesterday it was announced that he is to receive about 250,000 shares worth around £2.1m for WPP's performance between 2014 and 2018. However, Sorrell has already chosen to repay an undisclosed sum (thought to be less than £1m) in disputed expenses.
Six weeks after quitting WPP, Sorrell became head of shell company Derriston Capital, since renamed S4 Capital, as a vehicle to buy marketing firms. Its first acquisition, of Dutch creative digital production company MediaMonks, took place last summer, and at the end of the year the firm purchased online advertising and marketing services firm MightyHive, which was then merged with S4 Capital. Now listed on the London Stock Exchange, S4 Capital reported revenue of £26.2m in the three months ended 30th September 2018.
Sorrell still holds a 1.4% stake in WPP, worth an estimated £150m despite the company's recent downturn.
Web sites: www.wpp.com and www.s4capital.com .
All articles 2006-20 written and edited by Mel Crowther and/or Nick Thomas.