60% pay rise ???? you must be joking !!!!! Sir Martin takes a step too far.......
Yes WPP is doing well, yes it is beating the competition, yes Sir Martin has made much of it happen but given the issues around CEO pay over the past few weeks did nobody - Sir Martin, the remuneration committee (REMCO), the NEDs or the Chairman even think that a 60% pay increase might not go down well ????? Even if every penny of it could have been specifically attributed to performance improvements 60% is pushing your luck in anyones book in the present climate no matter who you are. Further there was not specific evidence of direct links to performance improvements presented to shareholders.
Thats the key issue for CEOs, NEDs and REMCOs; either the pay package has to demonstrate a clear link to specific performance measures or it should not be proposed, that simple. The days of fudged and fuzzy performance related pay has gone......CEOs won't accept that for employees so why should they expect shareholders to let them get away with it? If that link is there the evidence must be clearly presented to shareholders to justify it.
The "shareholder spring" also poses significant questions about the capability, courage and awareness of REMCOs / NEDs - do they understand how to make remuneration reflect performance, do they have the courage to say no to the CEO, do they even understand the perspectives of shareholders and employees ? In many cases the answer to all 3 is often no. Something needs to be done about this. It shouldn't be down to shareholders to inject reality and relevance to remuneration thats what the NEDs/ REMCO get paid for. But to do this they also need to know that the CEO can't get rid of them if they object to their pay demands, but thats another issue.
For TV interview by Chris on subject http://chrisroebuck.co/media/tv-and-radio-interviews/60-of-shareholders-fail-to-support-wpp-ceos-pay-package/
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