Shareholder snub to Sir Martin’s pay deal
WPP shareholders have voted down a recommendation for a £6.8m pay deal for chief executive Sir Martin Sorrell.
According to BBC reports, nearly 60% of the marketing services group’s shareholders have already voted by post against the pay award. Votes from shareholders at WPP’s annual conference today (13 June) yet to come are not expected to make any great change to the result.
The vote on the pay deal, which includes a £1.3m salary, a £2m annual bonus and £3m in deferred shares and other benefits, is not binding on the renumeration committee’s decision.
The rejection of the pay recommendation is the latest in a series of snubs regarding pay and bonuses to chief executives at big companies, such as Trinity Mirror’s departing chief executive Sly Bailey.
WPP also issued a trading statement today regarding the last four months performance. Reported global revenues rose 7% year on year and like-for-like revenues rose 4%.
The company expects this year’s performance to resemble 2011 “with continuing improvement across all sectors and geographies, but at lower levels of overall like-for-like growth.”
However, the forecast for 2013 is of a more “challenging” landscape with a re-elected or newly elected United States President having “to confront the growing US budget deficit, whilst possibly dealing with a deadlocked Congress.”
However, WPP believes 2014 “looks a better prospect”, with the World Cup in Brazil, the Winter Olympics in Sochi and the mid-term Congressional elections in America.
