As noted in the Notes to the policy table, the Company uses share-based compensation across the workforce to incentivise, retain and recruit talent and to encourage a strong ownership culture among employees. The use of the main share plans in 2015 is described below
The Restricted Stock Plan
The WPP Leaders, Partners and High Potential program provided awards to approximately 1,700 of our key executives in 2015. Awards will vest three-years after grant, provided the participant is still employed within the Group. Awards are subject to malus conditions and for awards granted in 2016 onwards, clawback conditions will also apply.
WPP Share Option Plan 2015
At the 2015 AGM share owners approved the WPP Share Option Plan 2015 as the replacement for the Executive Stock-Option Plan and Worldwide Ownership Plan.
During 2015, the WPP Share Option Plan 2015 was used to make awards to over 48,000 employees. By 31 December 2015, options under this plan, and its predecessor plan, the Worldwide Ownership Plan, had been granted to approximately 147,000 employees over 72.9 million shares since March 1997.
During 2015, approximately 20,000 WPP employees who had received awards under the Worldwide Ownership Plan, took advantage of the rising share price and exercised their options.
While the WPP Share Option Plan 2015 provides the authority to make executive option awards in addition to all-employee awards, no executive option awards were granted in 2015.
Share incentive dilution for 2004 to 2014
The share incentive dilution level, measured on a 10-year rolling basis, was at 2.9% at 31 December 2015 (2014: 2.7%). It is intended that awards under all plans, other than share options, will all be satisfied with purchased shares held either in the ESOPs or in treasury.
Sir John Hood
Chairman of the Compensation Committee on behalf of the Board of Directors of WPP plc
15 April 2016