WPP – AGM 10 june 2020
Item 2: Remuneration report
The Company used the following performance criteria for the bonus: profit before tax (PBT) growth (23.33%), headline operating margin improvement (23.33%), revenue less pass-through costs growth (23.33%), and individual strategic objectives (30%). PBT growth were below the target (-8.5% vs. -5% as target), operating margin was at the target (-1%) and revenue growth outperformed target (-1.3% vs. -1.75%). However, the CEO's 2019 bonus payout was 138% of salary (+83.3% annualised). The weight of financial objectives was 78% and personal objectives 60% out of the total 138% of base salary, which we consider disproportionate.
Item 3: Remuneration policy
We appreciate the proposed reduction in the STI and LTI maximum opportunities. Nevertheless, the STI maximum is grossly excessive and thus we cannot accept the new policy.
Item 15: Re-elect the auditor
Deloitte has been the company's external auditor since 2002 (18 years). The EU audit market reform requires to change external auditors on a regular basis (every 10 years or every 20 years if a public tendering process is conducted) to guarantee the independence of the audit firm and the quality of the audit. No tender has been made and WPP states they will re-tender no later than 2022.
WPP is a holding company. Through its subsidiaries, Co. is a communications services organization providing national and multinational clients a range of communications services. Co. is organized into four operating segments: Advertising and Media Investment Management; Data Investment Management; Public Relations and Public Affairs; and Branding and Identity, Healthcare and Specialist Communications. This last reportable segment includes WPP Digital and direct, digital, promotional & relationship marketing.
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