WPP WPP PLC

By Nathalie Tadena 

WPP's Martin Sorrell was once again the highest-paid chief executive in the advertising industry last year, receiving 70.4 million pounds ($103 million) in compensation.

The bulk of Mr. Sorrell's 2015 compensation came from a hefty long-term incentive stock award valued at GBP62.8 million, according to the ad holding company's annual report. He received a base salary of GBP1.15 million and a short-term stock incentive worth GBP4.3 million, in addition to pension contributions and other benefits. In comparison, Mr. Sorrell was awarded total compensation of GBP42.7 million ($62 million) in 2014.

"While the value of Sir Martin Sorrell's award is very large, it was the result of an outstanding set of returns to share owners," John Hood, chairman of WPP's compensation committee, wrote in the company's annual report. WPP's shares rose 16% in 2015.

Though Mr. Sorrell, who is 71 years old, hasn't indicated any plans to step down, WPP said it is taking steps to identify possible successors. In a report to shareholders, WPP Chairman Roberto Quarta noted that the company held three detailed senior management and CEO succession planning reviews in 2015 and said the company has a "strong pool" of internal and external candidates to draw from.

"At some point we all leave our jobs. The question is when. Whether, in Sir Martin's case, that happens tomorrow, in one, two, three, four or five years, or even over a longer period, we have already begun to identify internal and external candidates who should be considered," Mr. Quarta said.

Mr. Sorrell, who has led WPP for more than 30 years, drew far more compensation than the CEOs of rival holding companies. Omnicom CEO John Wren received $23.6 million in total compensation for 2015, while Interpublic CEO Michael Roth got $14.5 million . Publicis CEO Maurice Levy received EUR3.9 million ($4.5 million) last year, according to the company's annual report. Mr. Levy doesn't receive a base salary and his annual compensation is capped at EUR5 million.

Mr. Sorrell's compensation has come under fire from shareholders in the past. After shareholders rejected Mr. Sorrell's pay package at the 2012 general meeting, WPP changed its long-term bonus plan and reduced the maximum payouts for Mr. Sorrell.

WPP is the world's largest ad holding company, generating GBP12.2 billion in revenue last year. The company, which owns agencies such as Ogilvy & Mather and Grey, had net sales growth of 3.3% in 2015.

Write to Nathalie Tadena at nathalie.tadena@wsj.com

(END) Dow Jones Newswires

April 29, 2016 11:07 ET (15:07 GMT)

WPP (NYSE:WPP)
Historical Stock Chart
From Mar 2024 to Apr 2024

WPP (NYSE:WPP)
Historical Stock Chart
From Apr 2023 to Apr 2024