Jeffrey Rosen, the chairman of the remuneration committee of WPP, will be in the firing line on Wednesday when investors are expected to hand a stinging rebuke to the advertising and media company over its pay policies.
An investment banker who led the discussions with shareholders over a 30% salary rise for the chief executive Sir Martin Sorrell, Rosen faces a protest vote against his re-election to the board following a deterioration in the relationship with investors in the FTSE 100 company.
The remuneration report – which contains the details of the rise in Sorrell's salary to £1.3m and a total pay rise of 60% when bonuses are included – is also believed to be on course to be the sixth remuneration report defeated by shareholders this year.
This would be a record tally of defeats since the vote on pay policies was introduced almost 10 years ago and would mark a high point in the so-called "shareholder spring" this year following the consultation by business secretary Vince Cable over executive pay.
Cable will later this month outline the precise new powers he intends to hand investors to clamp down on pay, although he seems set to back-track on annual binding votes on future pay deals in addition to the current advisory vote. A 75% threshold may be imposed, however, on a binding vote on any new pay policies.
Premier Farnell endured a 30% protest against its pay policies on Tuesday and further rebellions are expected in the coming weeks as the annual general meeting season continues.
The WPP chairman, Philip Lader, is expected to admit to those who attend the meeting that the company needs to embark on a fresh round of discussions with City institutions over pay deals.
But Lader, a former US ambassador to London, is also likely to continue to defend the need to increase Sorrell's pay on commercial grounds, arguing the chief executive has not had a rise since 2007 and needs to be paid in line with his global peers.
