Aligning pay and performance
As set out in the Executive Remuneration Policy, the committee seeks to align the variable remuneration with the key strategic priorities of WPP, therefore maximising the dynamic between pay and performance.
This dynamic is contingent upon the committee setting challenging targets each year. The following graph and table demonstrate the relation between pay and performance over the last five years for the Group chief executive.
|Group chief executive total remuneration (£000)2||7,199||11,597||11,941||17,543||29,846|
|Year-on-year change in Group chief executive total remuneration||63%||61%||3%||47%||70%|
|Short-term incentives award against maximum opportunity||32%||95%||77%||62%||82%|
|Long-term incentives award against maximum opportunity||50%||83%||46%||86%||87%|
|Change in annual TSR3||66%||32%||-13%||38%||56%|
|Change in five-year TSR4||10%||37%||13%||45%||241%|
Source: DataStream Return Index
1 Growth in the value of a hypothetical £100 holding over five years FTSE 100 (the broad market equity index of which WPP is a constituent) comparison based on one month average of trading day values. Source: DataStream.
2 Calculated using the single figure methodology.
3 TSR calculated using a one-month trading day average, consistent with the data shown in the graph.
4 TSR calculated using a six-month averaging period, consistent with the calculation methodology under LEAP/EPSP.
Chapter 9 of 13