The Saatchi & Saatchi Co. chairman has received $468,750 annually since 1991; he waived the other half of his pay. But starting July 1, Mr. Saatchi said, his base salary will be cut to $300,000 plus an unspecified bonus if the company meets undisclosed revenue targets. Mr. Saatchi also told the company's June 9 annual meeting his contract will be reduced to three years from five.
His new pay structure is the start of a sweeping change to make compensation more performance-related for agency managers.
The company has also dropped before it was filled a job just created in March to reconcile a feud between Mr. Saatchi and Chief Executive Charles Scott.
Mr. Scott told shareholders that, with internal changes already made, the board has decided it's unnecessary to hire a new manager at the holding company level to direct revenue generation. The function will, instead, be performed by Mr. Saatchi, Mr. Scott said.
Last year, the company posted its first profit in three years. Saatchi reported pretax profit of $29 million compared with a $900 million loss for 1992 and a 9% increase in revenue to $1.2 billion.