WPP (LON:WPP) have curbed CEO Sir Martin Sorrell’s pay amid mounting pressure from investors.
The media and advertising agency, run by Sir Sorrell, is set to lower his pay packet to £48 million, after continued opposition from shareholders.
Back in 2015, Sorell received the highest payout in UK corporate history, receiving a substantial £70 million for the year which provoked a backlash amongst stakeholders and investors.
Since 2012, it is estimated that Sorell has received around £210 million in renumeration from WPP. The recently announced wage revision is subject to confirmation from the board members at the company’s annual meeting in June.
Despite the move, this has not quelled the desire for his removal, as pressure for WPP to appoint a successor to their longstanding CEO remains.
In WPP’s annual report published last Friday, Chairman Robert Quarta commented on the matter:
“Our succession planning process, which has always been rigorous, has become even more focused and detailed over the past year.”
He added: “Whether it happens in the near or distant future, when Sir Martin leaves his role as chief executive, we will have an exceptional team of potential candidates on the bench.”
Sorell previously defended his substantial pay package, citing his more than 30 years spent cultivating the company’s success as a global media enterprise. He commented:
“I’m not a Johnny-come-lately who picked a company up and turned it round [for a big payday],” he said.
“If it was one five-year plan and we buggered off, fine [to criticise my pay]. Over those 31 years … I have taken a significant degree of risk. [WPP] is where my wealth is. It is long effort over a long period of time.”
This comes amidst calls from MPs for the government to crackdown on “excessive” renumeration of executives, after concerns that it was eroding public trust in businesses. This arose as part of The Business, Energy and Industrial Strategy select committee’s review into corporate government.
Committee chairman Iain Wright said: “Executive pay has been ratcheted up so high that it is impossible to see a credible link between remuneration and performance.
“Pay must be reformed and simplified to incentivise decision-making for the long term success of the business and to pursue wider company objectives than share value.”
Shares in WPP are currently down 1.25 percent as of 13.21PM (GMT).