WPP chief faces shareholder anger over £70m pay deal

WPP founder Sir Martin Sorrell has again defended his bumper pay package, saying shareholders had previously approved the advertising company’s incentive plans by a substantial margin.

Sorrell is likely to face anger from shareholders at the company’s annual meeting in June after collecting a share award of nearly £63 million.

In total, his remuneration for last year is estimated to hit £70 million, one of the biggest pay cheques in British corporate history. Full details will be revealed in the company’s annual report on Friday.

Sorrell (71) who started the company by taking a stake in Wire and Plastics Products in 1985 and built it into a global advertising powerhouse, argued that his remuneration reflected the success of WPP. "It's really pay for performance over the long term, over 30 plus years," he told the BBC's Today programme.

“I’m not saying I’m worth it or not,” he added. “Shareholders will have a view. It’s a very democratic process.” Asked whether he was expecting a revolt over his pay, he said: “That’s up to them. They are asked for their view and they will vote how they see fit.”

He said the advertising firm’s incentive plans had been approved by shareholders by a margin of four or five to one, although he added: “Shareholders can change their minds, I accept that.”

Sorrell’s £70 million remuneration is believed to be the second-largest ever granted to a FTSE 100 chief executive, behind only the £92 million in shares and cash paid to Bart Becht while he was chief executive of Reckitt Benckiser in 2009.

Asked whether he was embarrassed about his pay package, he replied: “I’m not embarrassed about the growth of the company from two people in one room in Lincoln’s Inn Fields in 1985 to 190,000 people in 112 countries and a leadership position in our industry - a world leader that’s 50 per cent bigger than its next competitor. I’m not embarrassed about that success.”

Sorrell has faced other pay revolts. In 2012, almost 60 per cent of investors opposed the pay deals for WPP’s directors. This prompted the company to change the long-term bonus scheme, called Leap, to a less generous scheme that will come into force in 2018 and cap Sorrell’s pay at less than £20 million, based on his existing salary.

He spoke from New York, as figures from WPP showed that it had a strong start to the year, reporting revenues of £3.1bn for the first quarter, with strong growth in the UK.

Guardian