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WPP boss Sir Martin Sorrell defends £70m pay package | WPP boss Sir Martin Sorrell defends £70m pay package |
(about 1 hour later) | |
WPP chief executive Sir Martin Sorrell has defended his pay package worth up to £70m. | |
Sir Martin, who has previously faced shareholder revolts over his pay, said he was "not embarrassed" by the success of the company he founded. | |
He said his pay was based on the performance of WPP, the world's largest advertising group. | |
His comments came as WPP reported a 5.1% in quarterly revenues to £3.1bn compared with last year. | |
Sir Martin told BBC Radio 4's Today programme that comparisons to Sir Philip Green, the former owner of failed retailer BHS, were "specious". | |
"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, which I think is important," he said. | |
WPP employs about 190,000 people worldwide. | |
Profile: Sir Martin Sorrell | |
The company has expanded rapidly in recent years, and brought in $1.8bn worth of revenue from new advertising customers in the first three months of this year. | |
Growth has been particularly pronounced in the US, UK and western Europe, WPP said. | |
Sir Martin's pay has previously sparked controversy at WPP, with nearly 60% of shareholders voting against his proposed remuneration package, worth £6.8m, in 2012. | |
This latest generous package makes Sorrell the best-paid chief executive on the FTSE 100, with much of the £70m payment consisting of a £62.8m long-term bonus. | |
His annual salary was £1.15m, with the rest consisting of short-term bonuses and other benefits. | |
Shareholder revolts | |
Shareholders of other companies have also expressed anger about executive pay in recent months. | |
Last month 59% of BP shareholders voted against a 20% pay rise for chief executive Bob Dudley, that would have netted him £14m. | |
The vote against the increase was non-binding, but BP's chairman said at the annual meeting that the sentiment would be reflected in future pay deals. | |
Last week, Anglo American said it would be "mindful" of concerns about executive pay after more than two fifths of investors voted against a remuneration deal that included £3.4m for chief executive Mark Cutifani. | |
During the financial crisis, 90% of shareholders at Royal Bank of Scotland rebelled against then chief executive Fred Goodwin's pension package. |