LONDON, April 28 WPP, the world's
largest advertising agency, will cut the amount it pays its
chief executive and founder Martin Sorrell to no more than 19
million pounds ($24.6 million) after an investor backlash
sparked by previous record payouts.
In its annual report released on Friday, the company said
the maximum Sorrell would receive this year would be well below
the 48 million pounds he received in 2016 and the 70 million
pounds in 2015 - one of the biggest ever payouts in Britain.
Sorrell's pay is being reduced as the company moves to a
different incentive scheme.
WPP has outperformed its rivals in recent years but the
scale of Sorrell's rewards has riled some investors. A third of
shareholders refused to back the 70 million pound package at a
fractious meeting in June last year.
One of the best known businessmen in Britain, Sorrell built
the advertising group WPP from a two-man operation in a London
office in 1985 to one that now dominates the industry with
around 134,000 staff in more than 100 countries.
He says that during his 30 years in charge he has put his
own money into the firm and reinvested nearly all his income to
buy WPP stock, meaning all his wealth and interests are tied up
in the future of the company.
Executive pay is a hot political topic in Britain after
Prime Minister Theresa May vowed to use her time in office to
help those who voted for Brexit in protest at "out of touch"
elites and inequality.
WPP reported first quarter results that were slightly below
forecasts on Thursday, held back by a weaker performance in
($1 = 0.7733 pounds)
(Reporting by Kate Holton; Editing by Keith Weir)