The £70m pay package of advertising boss Martin Sorrell has come under scrutiny from a group of UK-based public sector pension funds.
Members of the Local Authority Pension Fund Forum (LAPFF) urged its members to vote against WPP’s remuneration report at the advertising company’s annual meeting this week, citing the pay offered to the chief executive as ‘excessive’.
Sorrell’s pay has come under scrutiny, with some shareholder advisory groups asking investors to reject his compensation at the company’s annual general meeting tomorrow.
LAPFF said Sorrell’s pay rose by 56 per cent over the past five years to £70.4 million pounds, twice the year-on-year average increase in the company’s total shareholder return over the same period.
Sorrell’s total variable pay is more than 58 times his £1.15m salary, the group said, adding that he was among the top 10 highly paid CEOs of the FTSE 100.
“Martin Sorrell’s remuneration is derived from the formulaic application of long-term co-investment scheme approved by an 83 per cent vote in favour by shareholders in 2009,” a WPP spokesman told Reuters.
Campaign group ShareAction also disapproved Sorrell’s pay.