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WPP boss Sir Martin Sorrell defends £70m pay package | WPP boss Sir Martin Sorrell defends £70m pay package |
(about 9 hours later) | |
WPP chief executive Sir Martin Sorrell has defended his pay package worth up to £70m. | 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. | 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. | 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% increase in quarterly revenues to £3.1bn compared with last year. | His comments came as WPP reported a 5.1% increase in quarterly revenues to £3.1bn compared with last year. |
Sir Martin told BBC Radio 4's Today programme: "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." | Sir Martin told BBC Radio 4's Today programme: "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." |
Meanwhile, Royal London Asset Management said on Thursday it would vote against the 2015 remuneration reports at Standard Chartered and Reckitt Benckiser. | Meanwhile, Royal London Asset Management said on Thursday it would vote against the 2015 remuneration reports at Standard Chartered and Reckitt Benckiser. |
Ashley Hamilton Claxton, corporate governance manager at Royal London, said investors were objecting to plans to award bumper packages in the face of underwhelming performance. | Ashley Hamilton Claxton, corporate governance manager at Royal London, said investors were objecting to plans to award bumper packages in the face of underwhelming performance. |
Profile: Sir Martin Sorrell | Profile: Sir Martin Sorrell |
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. | 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. |
His latest package makes him the best-paid chief executive on the FTSE 100, with much of the £70m payment consisting of a £62.8m long-term bonus. | His latest package makes him the best-paid chief executive on the FTSE 100, with much of the £70m payment consisting of a £62.8m long-term bonus. |
Sir Martin's annual salary was £1.15m, with the rest consisting of short-term bonuses and other benefits. | Sir Martin's annual salary was £1.15m, with the rest consisting of short-term bonuses and other benefits. |
WPP, which employs about 190,000 people worldwide, has expanded rapidly in recent years. It brought in $1.8bn worth of revenue from new advertising customers in the first three months of this year. | WPP, which employs about 190,000 people worldwide, has expanded rapidly in recent years. It 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, the company said. | Growth has been particularly pronounced in the US, UK and western Europe, the company said. |
Shareholder revolts | Shareholder revolts |
Shareholders of other companies have also expressed anger about executive pay. | |
On Thursday, 72% of shareholders of engineering firm Weir Group voted against the firm's pay policy. | |
The company's board now intends to discuss alternative plans with shareholders. | |
Also on Thursday, 49% of investors at Shire voted against a 25% pay increase for chief executive Flemming Ornskov. | |
Last month 59% of BP shareholders voted against a 20% pay rise for chief executive Bob Dudley, that would have netted him £14m. | 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. | 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. | 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. | During the financial crisis, 90% of shareholders at Royal Bank of Scotland rebelled against then chief executive Fred Goodwin's pension package. |