Minus bonuses, CEOs are equals

By Published on .

In a year without annual bonuses, some agency network heads achieved a parity with their holding company CEOs, according to recent reports.

The salaries were disclosed in proxy statements sent to shareholders of Omnicom Group and Interpublic Group of Cos.

At Omnicom, BBDO chairman-CEO Allen Rosenshine pulled in a salary of $985,000 and DDB Chairman Keith Reinhard earned $925,000 in 2002, while Omnicom President-CEO John Wren earned $895,000 for the year. Omnicom's top management passed on the cash bonuses in 2002 and received no stock options. Mr. Wren's bonus in 2001 was $1.3 million, while Messrs. Rosenshine and Reinhard each received $1.1 million. Mr. Rosenshine and Mr. Reinhard both received options on 200,000 shares in 2001, while Mr. Wren's options totaled 2 million shares.

complicated

Interpublic's situation was complicated by top management changes this year, when John J. Dooner Jr. stepped down as chairman-CEO and became chairman-CEO of McCann-Erickson WorldGroup. Mr. Dooner's employment agreement includes an annual salary of $1.25 million, while his successor, David Bell, has a salary of $1 million. J. Brendan Ryan, CEO of FCB Worldwide, also receives $1 million annually, while Mr. Dooner's now-departed predecessor at McCann, James Heekin, made $970,000.

The executives did not get cash bonuses in 2002, but they received stock and options. Mr. Dooner received preferred stock worth $2.95 million at Dec. 31 prices and options for 375,000 shares, while Mr. Bell received restricted stock worth $294,750 and options for 55,000. Mr. Heekin and Mr. Ryan received restricted stock worth $1.6 million and $265,275 and options for 221,000 and 55,000 shares, respectively.

In this article:
Most Popular