WPP saw off an investor backlash over pay at its annual meeting yesterday when more than 40 percent of investors voted against the company’s remuneration report.
The protest comes after an ‘amber top’ warning last week from the Association of British Insurers (ABI), whose members control around 15 percent of the UK stock market.
The ABI said two directors – Mark Read, CEO of WPP Digital, and finance director Paul Richardson – were receiving excessive pay hikes.
PIRC, a governance adviser to institutional investors, had also urged shareholders not to back the advertising giant’s pay plan.
‘Concerns lie in excessiveness and the balance between reward and incentive,’ PIRC says in an alert.
Proxy adviser ISS is also said to have raised concerns, according to media reports.
In its annual report, WPP says its compensation policy ‘ensures there is a clear and direct link between the performance of the group and executive compensation throughout the group.
In 2010, the strong performance of the group therefore resulted in both increased incentive levels for management and strong returns for share owners.’
