Sorrell’s pay is safe as investor revolt fizzles
SIR MARTIN Sorrell could breathe a sigh of relief yesterday after WPP’s annual meeting (AGM) turned out to be a far more cordial event than it has been in recent years.
Opposition to his 2014 remuneration package, which has risen 43 per cent on last year to £43m, totalled just 22 per cent (including 2.7 per cent abstaining), down from 28 per cent last year.
Hostility to his remuneration came from parties including the shareholder charity ShareAction, which before the AGM had set up online petition WPPVoteNo.org with the aim of galvanising opposition to the payout. Describing Sorrell’s remuneration as reaching an “astronomical level”, ShareAction representative Roger Jeary used the issue to press WPP to ensure all employees were receiving at minimum the London living wage.
Further dissent came from Standard Life, represented by Guy Jubb, who also expressed discontent with the level of pay, before raising concerns about what he termed the “Sorrell centricity” of the company. Jubb criticised Sorrell’s perceived dominance of the board’s decision making processes and the lack of transparency regarding plans for his succession.
Despite these areas of dissent, the remainder of shareholders who spoke at the event were quick to praise Sorrell’s stewardship of WPP and the board’s decision to increase its dividend payout target to 50 per cent by 2017, up from the current level of 45 per cent.