WPP chief executive officer Mark Read saw his pay package fall by £2.2 million to £4.5 million in 2023, according to the holding group’s latest annual report.
The new figure is a significant 33% drop from Read’s 2022 salary – when he received close to £6.7 million in total pay and bonuses, which in turn marked a significant increase on his 2021 salary of £3.8 million.
Released last week as part of the global firm’s long-form annual report, Read’s one-third salary cut likely reflects WPP’s disappointing 0.9% growth figures – compounded by a downright alarming 70% drop in pre-tax profits.
Citing prohibitive restructuring costs across its family of global agencies and the decision of numerous US and tech businesses to cut back on advertising spend, WPP saw its pre-tax profits drop to £346 million – down from £1.1 billion.
“In 2023, our industry felt the impact of a tougher economic environment,” said Read.
“Spending by clients in the consumer packaged goods sector – WPP’s largest segment – grew well, but this was offset by a more cautious approach to marketing spend in other sectors, and notably lower spend from technology clients.”
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“Against this challenging backdrop, our performance was resilient, with like-for-like growth in revenue less pass-through costs of 0.9%. Strong growth in the UK and India was set against weaker trading in the US, China and Germany.”
The news wasn’t entirely negative however, as the London-based outfit posted a sustained profit margin of 14.8% – with one of its flagship agencies GroupM registering solid 4.9% growth.
Read said WPP expects 2024 to be a “transitional period of modest growth” as the firm moves through the current cycle, but remains “optimistic about the strategic opportunities ahead of us”.
It was also revealed that chairman Roberto Quarta – who described 2023 as “challenging” – would remain in his role longer than expected until a successor is appointed and transitioned.
“As I approach the end of my time as chairman of WPP, and reflect on the progress made since the change in executive leadership, I am struck by how far the company has come in recent years,” he said.
“Today’s WPP is a far stronger company, with a modern, integrated proposition for clients, a leading position in a growing market, and many attractive strategic opportunities ahead of it.”
Quarta is set to put himself up for re-election at the AGM.
