How we behave and how we're rewarded

At a glance

How we performed in 2016

Group financial performance measures:

Headline PBT growth

Headline PBT growth. Target: 5%, Actual: 6%
  • Target
  • Actual

Headline net sales margin improvement

Headline net sales margin improvement. Target: 0.3%, Actual: 0.2%
  • Target
  • Actual – constant currency
  • Like-for-like

Growth in net sales

Growth in net sales. Target: 3%, Actual: 3.1%
  • Target
  • Actual

Long-term total shareholder return performance1

WPP Total Shareholder Return (‘TSR’)

WPP Total Shareholder Return (‘TSR’) - 20 years 1006%, 10 years 249%, 5 years 210%, 1 year 19%
FTSE 100 241% 65% 51% 17%
S&P 500 470% 199% 146% 34%
CAC 40 322% 58% 66% 23%
MSCI World 329% 140% 105% 29%

Source: DataStream. TSR calculated up until 31 December 2016.

Change in value of a £100 investment in WPP over time relative to indices

Change in value of a £100 investment in WPP over 20 years relative to indices - WPP, £1106. FTSE 100, £570.   S&P 500, £422. CAC40, £341.
  • WPP
  • FTSE100
  • MSCI World Index
  • S&P 500
  • CAC40

Source: DataStream. TSR calculated up until 31 December 2016.

Change in value of a £100 investment in WPP over time relative to a composite index of peers

Change in value of a £100 investment in WPP over time relative to a composite index of peers (20 years) - WPP £1,106. Peer composite £742.
  • WPP
  • Peer composite

Source: DataStream. TSR calculated up until 31 December 2016. ‘Peer Composite’ comprises Havas, IPG, Omnicom and Publicis, and from its date of listing in 2001; Dentsu. All data has been converted on a daily basis into GBP. It is assumed that an investment is made on a market-cap weighted basis across all companies, redistributed at the end of each day.

1 TSR calculated using an averaging period of one month (one-year TSR) or six months (longer-term TSR) in common currency.

How much the executive directors earned in 2016 (£000)

Sir Martin Sorrell

How much the executive directors earned in 2015 (£000): Sir Martin Sorrell. Fixed Remuneration 3,596 (8%), Short-term incentives 2,992 (6%), Long-term incentives 41,560 (86%)
  • Fixed compensation 3,596
  • Short-term incentives 2,992
  • Long-term incentives 41,560

Paul Richardson

How much the executive directors earned in 2015 (£000): Paul Richardson. Fixed Remuneration 1,100 (12%), Short-term incentives 1,596 (16%), Long-term incentives 6,698 (72%)
  • Fixed compensation 1,100
  • Short-term incentives 1,517
  • Long-term incentives 6,698

How we will implement our compensation policy in 2017

How we will implement our compensation policy in 2017
Policy Implementation1
2017 Sir Martin Sorrell Paul Richardson2
Base salary 24-month review period No change £1,150,000 $1,080,470
Pension Pension is provided by way of contribution to a defined contribution arrangement, or a cash allowance, determined as a percentage of base salary Reduction/ No change 30% 30%
Benefits A fixed benefits allowance will be provided as an alternative to the provision of itemised benefits, to be used at the executive’s discretion Reduction £200,000 $85,000
Short-term incentives • 70% financial and 30% individual strategic objectives
• One-year performance
• 60% cash, 40% deferred WPP shares (two years)
Reduction Opportunity:
0% – 400%
Target:200%
Opportunity:
0% – 250%
Target:165%
Long-term incentives • TSR, EPS and ROE
• Five-year performance
• 100% WPP shares
Reduction Opportunity: 0% – 600% Opportunity: 0% – 300%

1 Opportunity and target expressed as a percentage of base salary.

2 Paul Richardson’s base salary figure is denominated in US dollars other than his fee for directorship of WPP plc which amounts to £100,000. Any sterling amounts have been converted into US dollar at an exchange rate of $1.3547 to £1.