Ousted WPP head Sorrell’s pay fell by £34m

SIR Martin Sorrell was paid nearly £14m just months before he was forced out from his advertising company over misconduct claims, it was revealed last night.

The former WPP chief executive’s pay bonanza came after a tough year for the company but it means he is still one of Britain’s best-paid executives.

And the tycoon is likely to pocket millions more in a pay-out after his departure, the circumstances of which are still unknown almost two weeks after the announcement.

Campaigners said the size of last year’s payment showed the firm’s approach was ‘completely dysfunctional’. Documents sneaked out by WPP last night revealed that Sorrell, 73, was paid £13.9m overall in 2017.

This included £10m of share awards, lavish benefits worth £200,000 and £402,000 in pension contributions. He was paid £48.1m in the previous year.

WPP has just reported its worst performance since the financial crisis, revealing a dip in sales.

Sir John Wood, chairman of the firm’s pay committee, said the sum paid to Sorrell last year was lower than in 2015 and 2016 because of the poor results and objections from shareholders over earlier payouts. ‘The committee exercised its discretion and determined that it would be inappropriate to award a bonus for 2017,’ he wrote.

But Luke Hildyard, director of the High Pay Centre, said: ‘It’s remarkable that a £13.9m payout equates to something of a lean year for Sir Martin, but that just shows how completely dysfunctional WPP’s pay practices have become. This is yet another failure of accountability, making a total mockery of claims that UK companies are models of good corporate governance.’

WPP and Sir Martin declined to comment.