WPP bonus may net PR bosses millions

NEW YORK: The heads of two WPP-owned PR agencies are set to rake in millions from a new bonus scheme announced last week by CEO Martin Sorrell.

NEW YORK: The heads of two WPP-owned PR agencies are set to rake in millions from a new bonus scheme announced last week by CEO Martin Sorrell.

NEW YORK: The heads of two WPP-owned PR agencies are set to rake in

millions from a new bonus scheme announced last week by CEO Martin

Sorrell.



Ogilvy CEO Bob Seltzer and Hill & Knowlton chairman/CEO Howard Paster

are two of 14 senior executives who could share up to dollars 100

million in stock if the communications group reaches the number one or

two position within five over rival holding companies such as Omnicom

and Publicis.



Sorrell’s goal is to reportedly get WPP’s PR, ad and direct marketing

components working together more closely. A company spokesman explained

the rationale behind the scheme: ’The logic is to align the motivations

of the executives with the interests of the shareholders.’



Added Seltzer, ’It should help integration. The idea is that we should

all understand each other’s business as well as we understand our

own.’



The US-style bonus scheme is unusual for a British-based company, as it

requires executives to invest their own money. Sorrell announced last

week that he will invest dollars 10 million while the 14 other senior

executives will be asked to invest another dollars 10 million between

them.



Seltzer and Paster will be expected to contribute in proportion to their

remuneration packages. In principle, the scheme will pay executives five

times their original investment if WPP achieves its financial goals.



Seltzer said it was difficult to estimate how much he would benefit from

the scheme, as the eventual payoff will be related to the size of future

returns to shareholders. The bonus plan has yet to gain final

approval.



WPP ad agency Ogilvy & Mather is interviewing candidates for the newly

created position of global PR chief. The move is part of a rebranding

effort which will see the agency become known as Ogilvy - a tribute to

founder David Ogilvy, who died in July.



O&M’s PR effort is currently directed by senior partner and director of

communications Nora Slattery, whose role will be split in two so she can

better focus on communications strategy. Slattery will continue to

report to O&M chairman and chief executive Shelly Lazarus.



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