WPP, the world's largest advertising agency, will likely face an investor revolt this week over its chief executive Sir Martin Sorrell’s pay.
About a quarter of shareholders are expected to protest against the FTSE 100’s best-paid chief executive’s remuneration on 7 June.
Sorrell received £48.1m in total remuneration last year, down 31.6 per cent from the £70.4m he received in 2015.
The drop was attributed to the value of his long-term incentive scheme, known as Leap, falling dramatically.
Sorrell’s pay from Leap fell from £62.8m to £41.6m while his short-term performance related pay was also down from £4.28m to approximately £3m.
Last year, some 34 per cent of WPP shareholders voted against Sorrell’s 2015 pay package.
A WPP spokesperson declined to comment on the likely outcome of voting levels.
He told City A.M.: “All of the historic long-term schemes were wholly performance-related and required the executive to put significant skin in the game rather than being one way options.
“All were approved by shareholders by overwhelming majorities when introduced.
“The EPSP [executive performance share plan] with a reduced opportunity was approved by shareholders at the 2013 AGM and given its five-year cycle we won’t see its first outcome until March 2018 in respect of WPP’s performance for the period to 31 December 2017.”
Revenue increased 16.9 per cent quarter-on-quarter, to £3.6bn, while on a constant currency basis it rose 3.6 per cent.
The company reported $2.1bn (£1.6bn) of new business in the quarter, compared with $1.8bn in the same period of last year.
Sorrell scaled the advertising group from a two-man operation in a London office in 1985 to one that now employs around 134,000 staff in more than 100 countries.