Business
EPSP 2013 - 17
EPSP 2013 - 17.
About this update from Wpp Plc
[{"type":"text","content":"\n \nRNS Number : 7524H WPP PLC 14 March 2018 \n\n\n\n\n\nFor Immediate Release\n\n\n14 March 2018\n \n\n\n\n\nWPP PLC (\"WPP\")\n \nEPSP 2013 - 17\n \n· WPP's Executive Performance Share Plan (\"EPSP\") is the performance-based, management incentive compensation plan designed to incentivise long-term performance and to focus on long-term retention and strategic priorities. \n· First five-year outcome under the EPSP which was designed following shareowner consultation and approved by shareowners in June 2013\n· Measures performance achievement equally across three key areas; earnings growth, capital effectiveness and share price growth using EPS growth, Return-on-Equity, Relative TSR metrics.\n· Relates to five-year performance period 2013-17 over which:\no Market capitalisation increased by 51.6% from £11.23bn to £17.03bn while the FTSE 100 rose by 30.3%\no £1,000 invested in WPP on 1 January 2013 increased to £1,510 by end of 2017 compared with £1,303 if invested in the FTSE 100\no EPS grew by 64.0% from 73.4p to 120.4p - a CAGR of 10.4%\no RoE averaged 15.8%\n· Share price weakness to date, post the 2013-17 performance period, has been reflected in the value received by executives in the current awards vesting and will be in future cycles of the EPSP.\n \n \nIntroduction\nWPP's EPSP was approved by shareowners in June 2013 and today's announcement is the first five-year outcome under the EPSP. The arithmetic application of the EPSP metrics has resulted in a vesting of 72.8% of the maximum.\n \nThe outcome results in the vesting of 858,730 shares for Sir Martin Sorrell, CEO, which were valued at £10.0m at the vesting price of £11.655435 per share on 13 March 2018.\n \nThis covers a five-year performance period in which the FTSE 100 rose 30.3% while WPP's shares rose 51.0%. £1,000 invested in WPP at the start of the period increased to £1,510 by the end of 2017 compared with £1,303 if invested in the FTSE 100. WPP's market capitalisation increased by 51.6% to £17.03 billion ($23.0 billion). The decline in WPP's share price since the end of the 2013-17 performance period has been reflected in the value received by executives in the current awards vesting and will be i...