WPP boss Sir Martin Sorrell is risking the wrath of his shareholders
after it was revealed he received a package worth almost £13m last
year.
Sorrell, one of the most powerful men in the business, saw his base salary jump by nearly a third to £1.3m. He also received £459,000 of benefits and just over £5m under WPP’s bonus schemes, pushing his 2011 pay to £6.77m, up nearly 60% on the previous year. Contributions to Sorrell’s pension jumped 46% to £585,000 in 2011.
On top of this, he landed a windfall of nearly £5.6m-worth of shares under the company’s Leadership Equity Acquisitions Plan, according to WPP’s annual report published on Monday. The scheme awards shares to match directors’ own investments in the company.
Jeffrey Rosen, chairman of WPP’s remuneration committee, said: “It has to be looked at in context. This is only the second time in ten years that there has been an increase in his salary, and only the second time in ten years that there has been an adjustment in his bonus percentages. We felt it was the fair thing to do.”
WPP suffered a major shareholder revolt over pay at its AGM last year, where 40% of voters refused to back the group’s 2010 remuneration report.
Last week Sir Martin hit out at claims his 2010 pay was substantial, because most of his earnings came via shares which he bought using his own money.
His remuneration that year totalled £4.23m, plus £400,000 of pension contributions.
WPP’s profits broke through the £1bn barrier for the first time in 2011, driven by a boom in digital and direct business.
Related stories
DM, digital at heart of WPP boom
