Executive directors’ emoluments

The value of salary and fees, benefits, annual incentives paid both in cash (STIP) and shares (ESA) and pension contributions for the year ending 31 December 2008 are set out in the table below. The table also shows comparative numbers for 2007. In the case of STIP and ESA, the figures shown are the value of the awards in respect of the year in question but received in the following year. Benefits include such items as healthcare, life assurance and allowances for cars and housing. Both Sir Martin Sorrell and Paul Richardson currently receive part of their remuneration in pounds sterling and part in US dollars. Any US dollar amounts received in 2008 have been converted into sterling at $1.8524 to £1 ($2.0019 for 2007). No compensation payments for loss of office have been made during 2008 to any individuals who have been directors of the Company.

  Salary and fees Other benefits Short-term
Incentive plans
(annual bonus)
Value of ESA Total annual
remuneration
Pension
contributions
  2008
£000
2007
£000
2008
£000
2007
£000
2008
£000
2007
£000
2008
£000
2007
£000
2008
£000
2007
£000
2008
£000
2007
£000
Executive directors                        
Sir Martin Sorrell1,2,3 1,033 1,003 110 35 1,250 1,650 753 885 3,146 3,573 398 400
Paul Richardson 563 469 89 82 440 481 550 567 1,642 1,599 158 95
Mark Read 275 275 1 1 172 191 230 255 678 722 28 27
Total remuneration 1,871 1,747 200 118 1,862 2,322 1,533 1,707 5,466 5,894 584 522
1
During 2008 an amount of approximately £7,000 was paid to Sir Martin Sorrell in respect of tax liabilities incurred by him on expenditure on various items considered by the UK Tax authorities as benefits in kind but which the committee consider to be essential to his ability to deliver his services successfully to the Group (£6,000 in 2007).
2
Payments of amounts equal to the dividends that would be payable (totalling £859,981) were made to Sir Martin Sorrell in respect of the shares reflected in the UK and US Deferred Stock Units Awards Agreements (which are the agreements that now compromise the awards granted under the Capital Investment Plan in 1995) during 2008 (£731,806 during 2007).
3
The Company has agreed to contribute to the expenses of maintaining an apartment in New York purchased by Sir Martin Sorrell, in lieu of his contractual right to be provided with accommodation whilst working there, as he is required to spend a considerable amount of time in New York due to the size of the Company’s business in the US. The Company did not make any such payments in 2008, although it could have been required to.