Sir Martin Sorrell leaves WPP with 71% pay drop
Sir Martin Sorrell’s remuneration for his final year at the helm of the world’s largest ad network plunged 71% to £13.9m in the last 12 months versus £48.1m in 2016 and £70.4m in 2015.
Sorrell's pay takes massive cut in 2017
The figures were shared in WPP’s annual report, released today (27 April), which was issued by executive chairman Roberto Quarta. It said Sorrell’s total pay package for 2017 – a year he dubbed “not pretty” in wake of its poor performance – totalled £13.9m. He received no bonus.
In 2016, he took home £48.1m with a £3m bonus and in 2015 received £70.4m with a £10m bonus in what was one of the biggest corporate payouts of the year.
As a result, investors demanded a review of his pay package and a new policy was introduced that would limit his pay to just £13m from 2021.
Little was said in the report on Sorrell’s sudden departure after he resigned earlier this month in the midst of an investigation into alleged financial misconduct at the company he founded over 30 years ago.
“The departure of the group chief executive was, of course, a difficult moment for WPP,” Quarta said.
“The board’s succession planning has always considered two scenarios: the planned transition over time and the unforeseen event. We would not have chosen the latter but that is what happened and we were prepared for it.”
According to reports, Sorrell is poised to walk away from the company with almost £20m in payouts over the next five years.
Hunt for replacement will be 'timely and efficient'
Quarta also said that the board has commenced the recruitment process for a replacement with the assistance of an external search firm which had already been working with network prior to Sorrell's departure.
Mark Read and Andrew Scott were appointed co-chief operating officers following Sorrell's exit, reporting to Quarta who's temporarily taken on the role of executive chairman.
Quarta said it is "considering both the pool of internal candidates already identified and external candidates" and assured that the "recruitment process will be conducted in a timely and efficient manner".
Read, the former CEO at Wunderman and the long-tipped front-runner to succeed Sorrell, said in an interview with the Financial Times this week that he would like the job.
'Too early' to talk strategy for 2018
Looking at the year ahead, Quarta said it was "too early to provide full details of the future strategy" but that WPP is aiming to "get even closer to our clients to better understand and meet their needs" as well as technology partners like Facebook and Google.
"We will ensure our structure and offer make it as simple as possible for clients to access our services across the Group; and we will put data, technology and creativity at the heart of what we do," he said in a note to shareholders.
"We will make details of the plan public as appropriate during the course of the year. Although your company has faced challenges in recent months, we begin this new phase from a position of market leadership and with total confidence in the enduring value of what we offer to clients. WPP remains well positioned to capitalise on the opportunities ahead, to the benefit of all our stakeholders."