Ad boss Sorrell set for up to £15m in bonuses … despite being ousted
ADVERTISING mogul Sir Martin Sorrell is in line to receive up to £15million in bonuses years after he resigned amid an alleged prostitution scandal.
Sir Martin left advertising group WPP after it was claimed he had put a £300 visit to a Mayfair brothel on expenses – an allegation he vehemently denied.
He was also accused of bullying former assistants and sacking a popular chauffeur. But now WPP has revealed that he will receive a generous series of share rewards worth up to £15.4million right up until 2022.
Sir Martin, 74, had already caused a row when he was given a £2.5million bonus last year despite widespread belief that the storm of allegations had damaged the firm’s reputation.
The mogul, who transformed WPP from a wire basket maker into the world’s largest advertising company, left without any official black marks – meaning he is considered a retiree for the purposes of long-term bonuses.
Responding to the revelation, Luke Hildyard, director of the High Pay Centre, said: ‘The sums of money being talked about here are wildly inappropriate and excessive in any circumstance.
‘This scheme is designed to focus the boss on the company’s longterm interests. So, by paying out even when he suddenly departs in controversial circumstances makes a total mockery of the board’s pretensions of oversight and accountability.’
WPP’s bonus schemes, which have been adjusted to take account of the amount of time Sir Martin was in charge, will land him up to 1.65million shares – worth £15.4million at today’s share price. Last year’s long-term scheme paid out a third of the maximum bonus.
WPP became embroiled in a storm of controversy this time last year after the company brought in top law firms to conduct a probe into Sir Martin’s conduct.
The investigation was prompted by allegations of misuse of company funds, but it was later alleged that he verbally abused staff, sacked a popular chauffeur and was spotted entering a brothel. It was alleged that Sir Martin visited the brothel at 50a Shepherd Market in Mayfair in June 2017.
Former employees accused him of being ‘brutal and inhuman’ to his assistants. Another claimed working for him was ‘ a pretty thankless task’, according to a Financial Times investigation at the time. Sir Martin reportedly decided to quit WPP, despite denying the accusations against him, because of a breakdown in relations with the board. The company said the investigation into the accusation against him found ‘nothing material’.
Under his tenure WPP was repeatedly named and shamed for ignoring shareholder concerns over extortionate executive pay.
From 2012 onwards Sir Martin received well in excess of £200million in pay packets, including a £70million pay day in 2015 that shocked some WPP investors.
A WPP spokesman said: ‘The circumstances of Sir Martin’s resignation entitled to him to pro-rata allocation of his remaining longterm shares schemes.’ A spokesman for Sir Martin said: ‘The company has now acknowledged Sir Martin’s good leaver status, despite the leaks and claims of breach of confidentiality it made, which have now fallen away completely.’