WPP Group, London, approved Sept. 2 a new bonus package for Chief Executive Martin Sorrell and 14 other of the most senior executives of the holding company and its operating companies. At an extraordinary general meeting, a little more than 94% of the votes cast favored the new package. To participate, the 15 executives must buy $20 million in WPP shares under an incentive plan that in five years could award them $100 million worth of shares at current prices if the company hits certain performance targets relative to 15 competitors. Depending on WPP's share price then, the payout could be lower than $100 million or higher. Since Mr. Sorrell is investing $10 million, he could receive $50 million in shares at current prices. Under the past five years of Mr. Sorrell's stewardship, WPP's share price has increased fivefold.
Copyright September 1999, Crain Communications Inc.