Sorrell’s £13m pay package still open to ‘deliberations’

THE shadow of an investor revolt against WPP chief executive’s Sir Martin Sorrell’s near-£13 million pay package loomed larger yesterday after comments by the firm’s chairman.

The odds were seen as narrowing on the package being watered down after WPP chairman Philip Lader said that, while Sorrell’s pay and short- and long-term bonuses had been carefully judged, they were open to further “deliberations”.

Speaking ahead of the agency’s annual general meeting in Dublin on Wednesday, Lader gave a clear indication that the scale of any shareholder revolt would be taken into account by the board even though any vote is advisory rather than legally binding.

He said: “We will look to the vote – I do not want to define a specific hurdle we must clear – and then take the actions that are in the best long-term interests of our shareholders.”

It is the first time in the month-long row over Sorrell’s remuneration that the chairman, a former White House deputy chief of staff, has spoken on the issue or any member of the board suggested the package might be altered.

Voting advisory service Manifest says that the WPP boss, who has presided over significant value creation for shareholders, could get up to £29m if a five-year incentive plan is included.

However, he would have to invest £4.55m of his own money into the long-term incentive plan for it to have a chance of paying out.

Sorrell wrote a lengthy article in a national newspaper last week defending his remuneration package and what some critics have dubbed his “proprietorial” tendencies.