It’s reasonably well-known that WPP stands for Wire & Plastic Products, the wire basket manufacturer that Sir Martin Sorrell chose 30 years ago as a vehicle for his plan to build a global advertising and marketing business. Wire & Plastic Products, operating from an industrial estate in Hythe, Kent, is still part of the group.
Wire & Plastic Products’ pre-history is a little more obscure. In researching my recent FT Magazine profile of WPP’s chief executive, I dug out the FT advertisement for the flotation of the original company in April 1971. Read more
I wrote in my FT column about Sir Martin Sorrell of WPP, whose remuneration was rejected by 60 per cent of shareholders on Wednesday, and the fact that most CEOs demand to be paid at least as much as their rivals.
That leads to the steady ratcheting up of pay that has enraged UK investors in this year’s “shareholder spring”.
But one aspect of companies such as Barclays and WPP, home to the two highest-paid UK chief executives, is less noticed. It is that the bosses of investment banks and marketing groups tend to compare themselves not just to outsiders, but to the people within their organisations.
Investment banks such as Barclays Capital, employ traders and bankers who earn more than their CEOs, but are invisible because they are not on the board, and so their pay remains secret. Bob Diamond, Barclays’ chief executive and the former head of the investment bank, is the public target. Read more
As head of the world’s largest advertising group by revenues, WPP’s Sir Martin Sorrell is used to talking about image. His own, which he assiduously promotes through the media, is about to take a battering.
Sorrell – "totally aligned"
ISS, the shareholder advisory firm, has recommended investors at its June 13 annual meeting should vote against WPP’s pay policies, according to which the chief executive will receive total pay and bonuses of £6.8m, up 60 per cent on the previous year.
Nothing new here, you might think. Investors holding more than a third of the stock voted against the remuneration report last year. Sir Martin, one of the longest-serving chief executives of a FTSE 100 company, shrugged that off and probably will again this time. Speaking before the ISS recommendation, he told the UK’s Sunday Times that his interests were “totally aligned with shareholders’. I am a big shareholder – 85 per cent of the package is performance related”. While his base salary had increased from £1m to £1.3m, he pointed out he had had “only one increase in 10 years”. Read more