Sorrell gets WPP seal of approval

ADVERTISING giant WPP paid boss Sir Martin Sorrell £1.59m last year and is sticking with his three-year renewable contract, even though it contravenes guidelines.

This means he is in line for at least £2m if he loses his job, and could get more than £3m depending on the timing.

The pay committee, chaired by Stanley Morten, said it reflects Sorrell's 'substantial commitment' to the business. Advertising chief Sorrell has invested £8m of his own money in WPP shares, and never sold a single one.

Perhaps he does not need to. Last year's £1.59m pay package included a £731,000 bonus. This is up from £873,000 the previous year, when Sorrell decided to forgo his bonus.

WPP paid a further £336,000 into his pension. It also plans to extend the expiry date on his share options from 2003-4 to 2006-7. They are already worth £9m at current prices, and will be worth much more if the share price rises.

WPP, up 18 3/4p at 490 1/2p, has fallen from 800p since the start of 2002.