Shareholder Uproar Over Pay Deal For Aegis Boss

28 May 2004

Aegis boss David Flynn has become the latest executive in the ad world to incur investor anger over high wages linked to lucrative contracts.

The parent company of Carat, Europe's largest media specialist, bowed to shareholder pressure after more than 50% voted against a new remuneration package for Flynn.

Under his contract, Flynn who received nearly £590,000 ($1 million; €884,000) last year, would get a £2.4 million pay-off if he was sacked.

In the event of a takeover or merger, Flynn would get £1.8m if he left within six months.

In the last few months investors in a number of media companies and advertising groups have voiced concern over the huge salaries bosses have been awarding themselves.

Charles Allen, chief executive of ITV, Tom Glocer, chief executive of Reuters, and WPP Group's Sir Martin Sorrell have all acceded to shareholder pressure and reduced their contracts.

The issue overshadowed a positive trading statement from Aegis which said first-quarter revenues rose nearly 11% year-on-year and 4.8% on a like-for-like basis.

The group said it won net new business worth $285m in the first quarter, compared with $103m for the same period last year.

Data sourced from:; additional content by WARC staff