Fixed elements of remuneration (audited)

Base salary and fees

Effective/review date Contractual salary and fees
Base salary and fees received in 2013

1 In accordance with Sir Martin Sorrell’s contract of employment, 40% of his salary is paid in US dollars. Due to the fluctuations in the US dollar: sterling exchange rates in the year, retranslating the amounts paid at the exchange rate of $1.5646 to £1 gives a total of £1,164,817.

2 The amount disclosed as the base salary and fees received in 2013 for Paul Richardson and Mark Read is a combination of two contractual amounts given the increase that took place effective 1 July 2013.

Sir Martin Sorrell1 1 Jan 2013 £1,150 £1,150
Paul Richardson2 1 July 2013 $945 and £100 $935 and £100
Mark Read2 1 July 2013 £440 £433

Each executive director receives a fee of £100,000 in respect of their directorship of WPP plc, which is included above. Share owners will be aware that the Group chief executive’s base salary is one aspect of his overall remuneration that has been reduced following consultation in 2012/13. Effective 1 January 2013, Sir Martin Sorrell’s base salary and fee was reduced by 12% to £1.15 million.

The base salary and fees for Paul Richardson and Mark Read, which had not changed since January 2011, were reviewed and increased with effect from 1 July 2013 by 1.8% and 3.5% respectively. Employees across the Group who were subject to a salary review received an average annual salary increase of approximately 3%.

Benefits, dividend equivalent payments and pension

2013 Benefits
2013 DEPs
Sir Martin Sorrell 350 1,101
Paul Richardson 107
Mark Read 11

The benefits shown are those provided to the executive directors that are deemed taxable in the UK (or those that would be taxable if Paul Richardson were resident in the UK). These benefits primarily include car and/or car allowance, healthcare, life assurance, long-term disability allowance, spousal travel costs and housing allowance. The table above also includes share owner-approved dividend equivalent payments of £1,100,578 (£940,480 during 2012) which are due on certain of Sir Martin Sorrell’s deferred share awards. The following table provides a breakdown of the key taxable benefits in respect of 2013:

Car benefits
Spousal travel
Housing allowance
Other expenses
Sir Martin Sorrell 30 43 167 63 47
Paul Richardson 24 15 44 24
Mark Read 3 8
Contractual pension 2013 Pension
Sir Martin Sorrell 40% 460
Paul Richardson 30% 210
Mark Read 15% 54

All pension benefits for the executive directors are provided on either a defined contribution or a cash allowance basis. Only the aggregate of base salary and fees is pensionable. As part of the alterations to the Group chief executive’s remuneration package following share owner consultation, his pension allowance was reduced to 40% with effect from 1 January 2013. Paul Richardson’s pension contribution remained unchanged at 30%. Mark Read’s pension contribution was increased from 10% to 15% with effect from 1 July 2013, aligning it with the standard level of provision for executive roles within the UK.

Chapter 9 of 13