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
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
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
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
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
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.