Most WPP shareholders reject executive pay deal

Published:  14 Jun at 6 PM

By a majority vote of 59.5%, WPP shareholders have rejected the firm’s executive pay report. The report included a £6.8 million deal for CEO Sir Martin Sorrell, and the vote was announced at the marketing agency's yearly meeting in Dublin. However, the vote is not binding.

The move comes after several shareholder advisory groups urged members to reject the deal. WPP is the most recent firm to see investor discontent about executive salaries.

The voting results so far have been derived from the postal votes of the company’s bigger institutional shareholders. Smaller shareholders attending the meeting in person are currently voting, but this will only have a limited effect on the end result.
Pirc, a shareholder advisory body, urged members to reject the deal, as it cited concerns over the pay’s "excessiveness". Pirc and other groups highlighted the issue that Sir Martin's salary was 60% more than one year earlier.

Jim Fitzpatrick, Northern Ireland business correspondent for the BBC, was at WPP's AGM. He said the company’s shareholders had effectively delivered their message. The firm justified their remuneration package but struck an apologetic note by pledging a more “continuous” commitment to shareholders.