How do these pay policies affect potential compensation packages?

These graphs seek to demonstrate how pay varies with performance. The graphs are reflective of the current pay policy as summarised in the Executive Remuneration Policy table.

Sir Martin Sorrell £000

Bar chart representing Sir Martin Sorrell's pay policy: Minimum - £3,061, On-plan - £7,802, Maximum - £19,264


Fixed and variable pay mix

Bar chart representing Sir Martin Sorrell's fixed and variable pay mix (Fixed, Short-term incentives & Long-term incentives): Minimum - £100%, On-plan - 39%, 32%, 29%, Maximum - 16%, 26%, 58%


Paul Richardson £000

Bar chart representing Paul Richardson's pay policy: Minimum - £1,022, On-plan - £2,993, Maximum - £5,950


Fixed and variable pay mix

Bar chart representing Paul Richardson's fixed and variable pay mix (Fixed, Short-term incentives & Long-term incentives): Minimum - £100%, On-plan - 34%, 47%, 19%, Maximum - 17%, 36%, 47%


Mark Read £000

Bar chart representing Mark Read's pay policy: Minimum - £517, On-plan - £1,282, Maximum - £2,277


Fixed and variable pay mix

Bar chart representing Mark Read's fixed and variable pay mix (Fixed, Short-term incentives & Long-term incentives): Minimum - £100%, On-plan - 40%, 46%, 14%, Maximum - 22%, 39%, 39%


  • Fixed
  • Short-term incentives
  • Long-term incentives

The graphs are informed by three performance scenarios and these, along with the assumptions used, are summarised below.

Fixed elements Consists of base salary and fees, benefits (including DEPs) and pension
  Base salary and fees reflect current levels (which are unchanged from FY2013)
  Benefits and DEPs are consistent with the single figure table for FY2013
  Pension reflects current levels (which are unchanged from FY2013)
  £000 Base salary & fees Benefits (inc. DEPs) Pension Total fixed
  Sir Martin Sorrell 1,150 1,451 40% 3,061
  Paul Richardson 704 107 30% 1,022
  Mark Read 440 11 15% 517
Short-term incentives On-plan scenario assumes target bonus is paid
  Maximum scenario assumes the full bonus is paid
  % of salary and fees Below threshold On-plan Maximum
  Sir Martin Sorrell 0% 217.5% 435%
  Paul Richardson 0% 200% 300%
  Mark Read 0% 134% 200%
Long-term incentives On-plan scenario assumes threshold vesting of an award at the current policy level
  Maximum scenario assumes full vesting of an award at the current policy level
  % of salary and fees Below threshold On-plan Maximum
  Sir Martin Sorrell 0% 195% 974%
  Paul Richardson 0% 80% 400%
  Mark Read 0% 40% 200%

Chapter 9 of 13

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