WPP CEO Martin Sorrell Receives $103 Million in Compensation for 2015
April 29 2016 - 11:22AM
Dow Jones News
By Nathalie Tadena
WPP's Martin Sorrell was once again the highest-paid chief
executive in the advertising industry last year, receiving 70.4
million pounds ($103 million) in compensation.
The bulk of Mr. Sorrell's 2015 compensation came from a hefty
long-term incentive stock award valued at GBP62.8 million,
according to the ad holding company's annual report. He received a
base salary of GBP1.15 million and a short-term stock incentive
worth GBP4.3 million, in addition to pension contributions and
other benefits. In comparison, Mr. Sorrell was awarded total
compensation of GBP42.7 million ($62 million) in 2014.
"While the value of Sir Martin Sorrell's award is very large, it
was the result of an outstanding set of returns to share owners,"
John Hood, chairman of WPP's compensation committee, wrote in the
company's annual report. WPP's shares rose 16% in 2015.
Though Mr. Sorrell, who is 71 years old, hasn't indicated any
plans to step down, WPP said it is taking steps to identify
possible successors. In a report to shareholders, WPP Chairman
Roberto Quarta noted that the company held three detailed senior
management and CEO succession planning reviews in 2015 and said the
company has a "strong pool" of internal and external candidates to
draw from.
"At some point we all leave our jobs. The question is when.
Whether, in Sir Martin's case, that happens tomorrow, in one, two,
three, four or five years, or even over a longer period, we have
already begun to identify internal and external candidates who
should be considered," Mr. Quarta said.
Mr. Sorrell, who has led WPP for more than 30 years, drew far
more compensation than the CEOs of rival holding companies. Omnicom
CEO John Wren received $23.6 million in total compensation for
2015, while Interpublic CEO Michael Roth got $14.5 million .
Publicis CEO Maurice Levy received EUR3.9 million ($4.5 million)
last year, according to the company's annual report. Mr. Levy
doesn't receive a base salary and his annual compensation is capped
at EUR5 million.
Mr. Sorrell's compensation has come under fire from shareholders
in the past. After shareholders rejected Mr. Sorrell's pay package
at the 2012 general meeting, WPP changed its long-term bonus plan
and reduced the maximum payouts for Mr. Sorrell.
WPP is the world's largest ad holding company, generating
GBP12.2 billion in revenue last year. The company, which owns
agencies such as Ogilvy & Mather and Grey, had net sales growth
of 3.3% in 2015.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
(END) Dow Jones Newswires
April 29, 2016 11:07 ET (15:07 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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