WPP’s (LON:WPP) former chief executive Martin Sorrell will earn £2.13 million from the ad giant’s long-term incentive plan this year, the Financial Times has revealed. Sorrell left the blue-chip company last year following allegations of misconduct.
WPP’s share price has been steady in London this morning, having climbed 0.42 percent to 859.80p as of 10:24 GMT. The shares are marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.50 percent higher at 7,221.60 points.
Sorrell to land £2m
The FT reported yesterday that WPP’s former boss Martin Sorrell will earn £2.13 million, with the ad giant’s executive performance share plan for the period between 2014 and 2018 set to result in a vesting of 33.3 percent of the maximum. Sorrell, who was at the helm of the company for four and half of those years, is entitled to about 250,000 shares under the plan, and will further be paid dividends on top of the value of the stock.
The newspaper noted that WPP had said that its former CEO had repaid personal expenses owed to the blue-chip group. A person with knowledge of the matter told the FT that he had given back £200,000 earlier this year, and a further undefined sum, which was less than £1 million.
The news comes after WPP appointed the chief executive of Microsoft UK to its board earlier this week.
Analysts on ad giant
UBS, which is bullish on WPP with a ‘buy’ rating, set a price target of 1,150p on the shares this month, while Barclays which sees the ad giant as an ‘equal weight,’ boosted its valuation on the stock from 980p to 1,000p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 1,153.17p.