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Twin Jackpots

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

The link between compensation and business objectives

WPP competes on the basis of its intellectual capital. This intellectual capital is created entirely by its people, and the committee endeavours to strike the right balance of fairness for both employees and share owners.

For this reason, the design of all executive compensation at WPP is governed by three guiding principles:

  • the need to be competitive;
  • being performance-driven; and
  • alignment with share owner interests.

These three principles are themselves derived from both our mission statement and our six business objectives.

The Compensation Committee regularly reviews fixed and variable compensation against appropriate benchmarks both internal and external to the organisation. When making decisions on executive compensation, the committee is briefed on the treatment of the broader population. This includes, for example, the consideration of budgeted salary increases across the organisation when determining executive salary increases. In addition, the committee approves the design of incentive plans as well as reviewing all the awards made under those incentive plans.

The chart below shows the proportion of total remuneration which is variable (due to the linkage to performance) compared to fixed remuneration.

Split fixed variable

WPP is committed to aligning executive performance and reward with share owner interests. From a compensation perspective, this is encouraged in a number of ways:

  • TSR has been chosen as the performance measure for both Renewed LEAP and LEAP III as it represents the best objective measure of the success of the Company;
  • share ownership is encouraged for the WPP Leaders (approximately the top 200 executives), all of whom have ownership goals of 40,000 ordinary shares;
  • all employees are given a share focus through the use of the Worldwide Ownership Plan; and
  • the majority of the compensation package of executive directors is paid in the form of shares (the value of ESAs and the expected value of awards under both Renewed LEAP and LEAP III).
Split cash share

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