Investors press WPP to plan for a post-Sorrell future
07 June 2017
Commenting on WPP’s AGM, Ashley Hamilton Claxton, Corporate Governance Manager at Royal London Asset Management, said:
“There is no doubt that WPP has become the media powerhouse it is today thanks to the hard work and dedication of Sir Martin Sorrell. The question for investors is how the business will look when he inevitably retires.
“Together with other investors, including Standard Life, we have pressed the Chairman into making real progress with succession planning. We are pleased that the board is taking this task seriously, by conducting more rigorous sourcing of potential internal candidates from group companies. Planning for succession is, however, still the biggest risk facing the company in our view, and there is still work to be done to assure shareholders of an orderly and stable transition when Sir Martin steps down.”
Commenting on executive pay at WPP, Ashley Hamilton Claxton, said:
“Executive pay at WPP continues to look excessive. Whilst we acknowledge that the reduction in the total long term bonuses and incentives available to executives under the new remuneration policy is a step in the right direction, the sheer scale of these remains exceptionally high, at over nine times the salary for the CEO. As with previous years we will be voting against WPP’s remuneration report and also this year’s new remuneration policy.”
Royal London Asset Management holds 6.18m shares in WPP, 0.48% of the firm worth £106m.
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About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £104.5 billion of assets and employs 86 investment professionals. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.