Shareholders revolt over £13m CEO pay deals at WPP and Pearson
Shareholders at two major British companies are pushing back against executive pay packages. WPP investors face a vote on new CEO Cindy Rose’s potential £11 million annual earnings, while Pearson’s Omar Abbosh has already drawn criticism for his nearly £13 million deal. Advisory firms have labelled the proposals as excessive, setting the stage for potential rebellions at upcoming meetings. At WPP, frustration is growing over Cindy Rose’s proposed pay. Advisory groups ISS and Glass Lewis have urged shareholders to reject her package, which could reach £11 million a year. The company’s stock has fallen by 20% this year, adding to investor dissatisfaction.
Pearson’s AGM saw nearly a quarter of shareholders oppose Omar Abbosh’s pay deal. His maximum possible payout for 2024 is £12.8 million—a 45% jump from last year’s £8.9 million cap. Both ISS and Glass Lewis criticised the increase as unjustified.
The backlash reflects wider concerns about executive compensation. WPP’s AGM is expected to see further resistance, with shareholders questioning whether such high rewards align with company performance. The votes highlight rising tensions between boards and investors over pay. WPP’s share decline and Pearson’s significant opposition signal that shareholders are demanding greater restraint. Both companies now face pressure to address concerns before future AGMs.
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