14th Mar 2019 17:47
LONDON (Alliance News) - WPP PLC is to pay former Chief Executive Martin Sorrell GBP2.1 million as part of a long term incentive plan after the firm confirmed it would not challenge the award.
The advertising guru left the company last year in the wake of allegations of personal misconduct, and it had been thought that WPP would look to withhold payouts after his departure.
However, on Thursday, WPP said that an executive performance share plan for 2014 to 2018 would vest to 33.3% of the maximum.
This entitles Sorrell around 250,000 shares, amounting to GBP2.1 million, in addition to dividends on the stock.
Sorrell is still set to hoover up nearly GBP20 million in payouts from WPP over the coming years as part of an exit deal with the firm.
His pay was a major bone of contention while at WPP.
Sorrell was awarded GBP70.4 million in 2015, GBP48.1 million in 2016 and GBP13.9 million in his last year at the helm of the advertising giant.
Investors had branded Sorrell's pay deals "excessive" and "ridiculous", and a third of shareholders staged a protest by voting against the company's remuneration policy in 2016.
Sorrell founded WPP more than 30 years ago, but his departure remains mired in controversy.
WPP carried out an inquiry into allegations that he misused company funds, but the details of the investigation were never revealed.
He has since gone on to start up a rival business, S4 Capital.
Shares in WPP closed flat at 856.20 pence on Thursday.
By Ravender Sembhy, Press Association City Editor
source: Press Association
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