Sorrell's basic salary rose from £840,000 to £1m this year, his first rise since 1999, according to the report.
Basic salary and fees form around a quarter of Sir Martin's overall remuneration, which is boosted by a cash bonus and executive share awards.
Last year, the WPP boss was paid £3,294,000, a £16,000 rise on the previous year. The 2006 salary package included £832,000 in salary and fees, and £34,000 for benefits such as healthcare, life assurance and car and housing allowances.
In an open letter to share owners, Sorrell revealed the group contributed an estimated £24.9m to social and community causes.
Looking forward, Sorrell described the group's future as a challenge to combine "the scale and resources of the largest firm together with the heart and mind of a small one".
He said: "As companies grow in size, most chairman and CEOs become concerned that their organisations may become flabby, slow to respond, bureaucratic and sclerotic...Any sensible business leader aggressively resists this phenomenon."
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