UK Individual Shareholders Society

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PRESS RELEASE 79 18/05/2016


ShareSoc Advises Investors to Vote Against WPP Plc Remuneration

ShareSoc (the UK Individual Shareholders Society) is advising its Members to vote against the Remuneration Report resolution at the forthcoming Annual General Meeting of WPP in June 2016. WPP’s share price has performed well in in recent years. However, ShareSoc consider:



- his potential future equity incentives (his unvested 1.8 million share awards would be worth £78 million at today’s share price if they all vested).


- Sir Martin owns £734 million of WPP shares (including shares from vested share incentive schemes).


- Sir Martin also received £18 million dividends or equivalents in 2015.



Commentary


Although Sir Martin claims that WPP has performed well in recent years, nevertheless

the quantum of remuneration is too high. Sir Martin received £70 million in 2015, £191

million since 2009. He is estimated, by ShareSoc Director and remuneration spokesman

Cliff Weight, to have been paid £300 million since he was appointed CEO. Cliff Weight

commented “In my view, it should be significantly less than half this amount - that

would be much more reasonable and certainly more than adequate.


It is yet another example of remuneration creep – remuneration creep has been

criticised just recently by the Investment Association working party interim report. For

example, Sir Martin received £1.5 million of dividend equivalent payments; and

£460,000 of pension contributions, even though he is 71 and well past the normal

retirement age.


He has an annual bonus maximum opportunity of 435% of salary and a long term

incentive annual award of 974% of salary. Sir Martin owns £734 million of WPP shares

(including shares from vested share incentive schemes), based on the recent £16.11

share price. Cliff Weight commented “In view of his shareholdings and existing

incentive awards, I don’t see why he needs to be given any more incentives. I don’t

think it will make him work any harder.



For further information, please contact:


Roger Lawson

Deputy Chairman, ShareSoc

Telephone: 020-8295-0378