Boston, MA 06\/06\/2014 (wallstreetpr) \u2013 The executives of Interpublic Group of Companies Inc (NYSE:IPG)<\/b> found it hard to explain to shareholders during last week\u2019s meeting why the company could not meet its own margin goal yet the CEO took home a fat pay.<\/p>\n
In addition to regretting the operating margin miss in 2013, the company promised to up the metric this year citing various support opportunities. The company ended 2013 with operating margin of 9.3 percent, yet it guided 10 percent for the year. As for the current year, the company is training its eyes on at least 10.3 percent.<\/p>\n
Fat pay justified<\/b><\/p>\n
Although Interpublic Group of Companies Inc (NYSE:IPG) CEO, Michael Roth, acknowledged that the company missed out on its own margin projection last year and promised better digits in 2014, he said that attack on his pay package is unjustified. He particularly cited that margin goal is just one of the several factors involved in determining his pay. Therefore, if other factors such as share price are considered, his pay comes in the mid-range of what his competitors took home last year.<\/p>\n
The CEO earned total pay of $11.7 million in stock compensation, incentives and salary last year. In the year, shares of Interpublic Group of Companies Inc (NYSE:IPG) jumped 60 percent and the company generated $7.1 billion in revenue. The CEOs of bigger peers such as Omnicom and WPP Group, whose companies generated revenue of $18.5 billion and $14.5 billion respectively in 2013, earned of $50 million and $18 million respectively last year.<\/p>\n
Although some shareholders questioned Mr. Roth and his executive team\u2019s fat compensations last year, the shareholders overwhelmingly voted to authorize the executive compensation plan and also approved executive performance plan in last week\u2019s meeting.<\/p>\n
Living up to expectation<\/b><\/p>\n
Perhaps the confidence that shareholders of Interpublic Group of Companies Inc (NYSE:IPG) showed in the company\u2019s senior leadership was linked to the recent encouraging financial results. The company reported 1Q2014 revenue of $1.64 billion, up 6.1 percent on a year-over-year basis. The revenue also exceeded Wall Street estimate of $1.60 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/06\/2014 (wallstreetpr) \u2013 The executives of Interpublic Group of Companies Inc (NYSE:IPG) found it hard to explain to shareholders during last week\u2019s meeting […]<\/p>\n","protected":false},"author":32,"featured_media":24942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3525,3526],"stock_ticker":[],"class_list":["post-24934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-interpublic-group-of-companies-inc-nyseipg","tag-nyseipg","entry"],"acf":[],"yoast_head":"\n