Aligning pay and performance

As set out in the Executive Remuneration Policy, the committee seeks to align the variable remuneration with the key strategic priorities of WPP, therefore maximising the dynamic between pay and performance.

This dynamic is contingent upon the committee setting challenging targets each year. The following graph and table demonstrate the relation between pay and performance over the last five years for the Group chief executive.

Historical TSR Performance1 Value of hypothetical £100 holding

Historical TSR performance: WPP - £410, FTSE 100 - £185
  • WPP
  • FTSE 100

Financial Year 31st December

  2009 2010 2011 2012 2013
Group chief executive total remuneration (£000)2 7,199 11,597 11,941 17,543 29,846
Year-on-year change in Group chief executive total remuneration 63% 61% 3% 47% 70%
Short-term incentives award against maximum opportunity 32% 95% 77% 62% 82%
Long-term incentives award against maximum opportunity 50% 83% 46% 86% 87%
Change in annual TSR3 66% 32% -13% 38% 56%
Change in five-year TSR4 10% 37% 13% 45% 241%

Source: DataStream Return Index

1 Growth in the value of a hypothetical £100 holding over five years FTSE 100 (the broad market equity index of which WPP is a constituent) comparison based on one month average of trading day values. Source: DataStream.

2 Calculated using the single figure methodology.

3 TSR calculated using a one-month trading day average, consistent with the data shown in the graph.

4 TSR calculated using a six-month averaging period, consistent with the calculation methodology under LEAP/EPSP.

Chapter 9 of 13

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