As a result of the decision WPP has had to reschedule an extraordinary general meeting that was due to be held next week. It has now been moved to Friday April 16.
Groups including the Association of British Insurers and the Pensions Investments Research Consultants had raised concerns with WPP investors about the advertising giant's five-year incentive pay plan, which could have seen Sir Martin walk away with 拢44m and lead to 拢112.5m being paid to WPP's 19 top executives.
WPP had been criticised for introducing the plan too quickly and without adequate dialogue with investors but in a statement it said that it had posted a circular to shareholders on March 22 and that, prior to this, it had held discussions with major institutional share owners.
According to the Financial Times, the incentive scheme would reward senior executives who had invested their own money in WPP shares by matching their investment by as much as five to one, depending on how the company performed against a group of peers.
WPP has now said that it will no longer weight the companies, including Omnicom, Interpublic Group and Publicis Groupe, with which it will compare itself.
It is not the first time that Sir Martin has had his pay arrangements with the company scrutinised by shareholders. Last year he was forced to give up his three-year employment contract because investors refused to back WPP's remuneration plan.
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