WPP chief executive Sir Martin Sorrell today ratcheted up the row over boardroom salaries by claiming companies are “scared” to pay bosses properly because the debate has become so toxic.
Sorrell, who is defiant about his £12.9 million package in the face of an investor revolt, told The Independent: “Everyone is scared of government threats to bring in new legislation to make votes binding on remuneration.
“What will government do about the bosses of hedge funds, private companies or even fund managers who get paid as much or more than those of listed companies?” He added: “If governments or institutions think pay is excessive, tax it. Don’t fiddle with the market.”
Sorrell has come under fire after his base salary rose 30% to £1.3 million and his potential long-term bonus was increased to 500% of salary.
WPP’s remuneration committee argues Sorrell is worth his pay after record 2011 results. Sorrell, who has built WPP into the world’s biggest advertising group worth £10 billion, said: “There is something curious about the way the British criticise success rather than admire it.”
Over 40% of shareholders voted against last year’s remuneration report and there is speculation that opposition will be high at next Wednesday’s annual meeting.
