Financial Times reported WPP CEO Cindy Rose might not earn up to £14.2 million (roughly $19.1 million USD) as previously reported by The Times, pending an investors vote scheduled to happen this week. Financial Times, incidentally, indicated the potential payout could reach £11 million versus The Times’ £14.2 million figure.
Institutional Shareholder Services and Glass Lewis—two prominent shareholder proxy advisory groups—recommended that investors vote against the proposed pay deal.
The ISS rejection recommendation stated the payment scheme “is considered out of proportion to the company’s market positioning and its financial performance,” and there is “no sufficient justification to set her total pay package at a premium to her predecessor.”
While former WPP CEO Mark Read’s 2024 salary was capped at £8.6 million, former WPP Overlord Sir Martin Sorrell once pocketed almost £30 million—so it’s tough to dispute or agree with the ISS position.
Glass Lewis stated investors should oppose pay proposals given “the significant salary on appointment for the CEO, the discrepancy between financial and non-financial metric outcomes under the annual bonus, and the lack of disclosure surrounding the decision to grant [long-term investment plan] awards at maximum level despite a significant fall in share price.”
Regarding the Rose pay package, WPP claimed it had “undertaken extensive consultation with our shareholders on the proposed changes to our remuneration policy, with strong support indicated from the vast majority.” Plus, the single White operating company stated the changes were “essential to align us with global peers, restore growth, and position WPP as a company fit for the future and built to win.”
The entire mess underscores three key points:
1. Rose should attend all earning calls, seizing such opportunities to justify her salary—whatever the actual amount might be.
2. Given the fuzzy pay figures, confusion surrounding organizational restructuring, and overall lack of transparency, WPP should consider keeping Burson, as there is great need for professional PR to hype the company’s progress.
3. WPP is a flaming dumpster.
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