WPP set for victory in £112.5m executive bonus pay row

LONDON - WPP Group could be set for victory in its dispute with shareholders over £112.5m in executive bonuses at a meeting this Friday.

According to reports, some of the institutional investors who had been planning to oppose the executive pay plan, which could see chief executive Sir Martin Sorrell receive a £44m bonus, are now planning to abstain from voting.

In a further piece of good news for WPP, the Association of British Insurers has also downgraded its "red top" warning against the pay plan to an amber rating, following the advertising holding company's changes to the original plan.

WPP had been criticised for introducing the plan too quickly and without adequate dialogue with investors but the company hit back at the claims, saying that it had written to shareholders and that it had held discussions with major institutional share owners.

In a retreat from its original plan, WPP said that it would not weight the companies, including Omnicom, Interpublic Group and Publicis Groupe, with which it will compare itself to determine its success and the size of the executive bonuses.

Sir Martin has already bowed to shareholder pressure about his three-year contract with the advertising giant, which is now to be shortened.

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