CEO Sir Martin Sorrell defends £70m pay package

WPP chief executive Sir Martin Sorrell has defended his pay package worth up to £70m.

Sir Martin, who has previously faced shareholder revolts over his pay, said he was "not embarrassed" by the success of the company he founded. 

He said his pay was based on the performance of WPP, the world's largest advertising group.

His comments came as WPP reported

a 5.1% in quarterly revenues to £3.1bn compared with last year.

Sir Martin told BBC Radio 4's Today programme that comparisons to Sir Philip Green, the former owner of failed retailer BHS, were "specious".

"I'm not embarrassed about the growth of the company from two people in one room in Lincoln's Inn Fields in 1985 to 190,000 people in 112 countries and a leadership position in our industry, which I think is important," he said.

WPP employs about 190,000 people worldwide.

The company has expanded rapidly in recent years, and brought in $1.8bn worth of revenue from new advertising customers in the first three months of this year.

Growth has been particularly pronounced in the US, UK and western Europe, WPP said.

Sir Martin's pay has previously sparked controversy at WPP, with nearly 60% of shareholders voting against his proposed remuneration package, worth £6.8m, in 2012.

This latest generous package makes Sorrell the best-paid chief executive on the FTSE 100, with much of the £70m payment consisting of a £62.8m long-term bonus.

His annual salary was £1.15m, with the rest consisting of short-term bonuses and other benefits.

Shareholder revolts

Shareholders of other companies have also expressed anger about executive pay in recent months.

Last month 59% of BP shareholders voted against a 20% pay rise for chief executive Bob Dudley, that would have netted him £14m.

The vote against the increase was non-binding, but BP's chairman said at the annual meeting that the sentiment would be reflected in future pay deals. 

Last week, Anglo American said it would be "mindful" of concerns about executive pay after more than two fifths of investors voted against a remuneration deal that included £3.4m for chief executive Mark Cutifani.

During the financial crisis, 90% of shareholders at Royal Bank of Scotland rebelled against then chief executive Fred Goodwin's pension package.