Agency Executives' Compensation Rises By Double Digits
Financially speaking, both Interpublic Group and Omnicom Group, the New York-based ad holding companies, had solid years in 2011 with double-digit gains in key growth metrics. In the pay department their CEOs were paid handsomely for stewarding those corporate gains. CEO John Wren's compensation was upped 43% to $15.4 million.
According to Omnicom’s just-released proxy statement, CEO John Wren received a 43% compensation increase last year to $15.4 million. The company said that more than 90% of Wren’s pay package came from variable, incentive-based programs tied to company growth, including bonuses, stock options and awards.
At IPG, CEO Michael Roth also received a hefty pay increase according to the company’s proxy statement, with the total coming in at just under $13 million, up 27% from the previous year. Most of Roth’s compensation also came in the form of incentive awards above his $1.4 million salary.
Both companies issued their proxy statements and other documents in preparation for upcoming annual meetings. Omnicom will hold its annual shareholder gathering in San Francisco on May 22, while IPG will convene in New York on May 24.
The companies issued their executive pay data shortly after London-based Aegis Group -- which, as previously reported, disclosed that its CEO, Jerry Buhlmann took in a total of about $3 million in 2011, his first full year in the CEO job.
Of the five executives whose 2011 pay packages IPG disclosed, only one -- Nick Brien, CEO of McCann Worldgroup -- leads an agency. The others were corporate executives. Brien’s was disclosed, per IPG documents, because he was one of the three most highly compensated executive officers of the company outside of the CEO and the CFO. Brien collected a total $4.79 million last year, down about 2% from 2010. His salary was $1.2 million, with most of the rest coming in various forms of incentive compensation.
IPG CFO Frank Mergenthaler earned a total of just over $4.5 million, up 15% from 2010, while Executive Vice President and Chief Strategy and Talent Officer Philippe Krakowsky pulled in over $3.5 million -- up 19% from 2010. Chief Accounting Officer Christopher Carroll earned $1.6 million last year, but the company did not indicate how that compared to 2010.
At Omnicom, CFO Randall Weisenburger earned nearly $11 million last year, up 33% from 2010, while Philip Angelastro -- senior vice president, finance and controller -- raked in close to $2.5 million, up 50% from 2010. Treasurer Dennis Hewitt collected $1.24 million last year, versus $954,000 the year before, while general counsel Michael O’Brien earned $1.82 million, up from $1.46 million in 2010.