M&C Saatchi executives awarded £7m of shares

Maurice Saatchi, Jeremy Sinclair, David Kershaw and Bill Muirhead have each been awarded shares worth more than £1.8m, after M&C Saatchi PLC outperformed share price targets.

Maurice Saatchi: executive director of M&C Saatchi
Maurice Saatchi: executive director of M&C Saatchi

In a trading update, M&C Saatchi, said its executive directors Saatchi and Muirhead, chief executive, Kershaw, and chairman, Sinclair were each awarded 886,733 shares as part of a long-term incentive programme.

The shares were granted at the end of last week and were worth 205p each at the time, equivalent to £1.82m to each of the four directors, or £7.27m in total.

Ahead of results to be announced on 18 March, M&C Saatchi said its board expects "profits to be in line with expectations" and anticipates "further progress" in the current financial year.

The shares were granted as conditional share awards on 14 October 2010 and the participants paid a non-refundable contribution of £97,250 to participate in the scheme. The shares vested on 31 December 2012.

The company said in a statement that the shares award reflected the achievement of targets for both share-price performance and total shareholder return conditions compared to the company’s listed peer group.

Lloyd Dorfman, non-executive director and chairman of the remuneration committee, said: "Three years ago, in conjunction with our major shareholders, a remuneration scheme was devised that ensured the alignment of the interests of the management team and shareholders.

"These awards reflect the strong operational performance of the M&C Saatchi businesses which has led to the group's outstanding performance compared to its peer group in terms of total shareholder return."