What the Chiefs Made in '06

NEW YORK Last year, Omnicom Group chief executive John Wren received total compensation of $13.2 million, almost twice that of Interpublic Group CEO Michael Roth who was granted $7.2 million, according to proxies filed this week for upcoming annual shareholder meetings.Adweek.com looked at Omnicom and IPG because as U.S.-based corporations, they are required to file extensive reports on executive compensation.That remuneration included base salaries of $1 million for Wren and $1.1 million for Roth.For Wren, the balance is composed of $6 million in bonuses; $5.9 million in stock options and $288,000 in other compensation. In addition to his salary, Roth received $2.5 million in stock, $2.1 million in bonus, $1.4 million in options and $173,000 in other compensation.In 2006, net income at Omnicom rose 9.3 percent to $864 million on an 8.5 percent hike in revenue to $11.4 billion. IPG, still in the midst of a turnaround, posted a loss of $79.3 million on revenue of $6.19 billion. Omnicom stock has a 52-week trading range of $84.12-109.35 and is currently valued around $106.53. IPG has a 52-week range of $7.79-$13.94 and is now trading around $12.85.Randy Weisenburger, Omnicom's CFO, earned nearly $8 million, of which $975,000 was his base salary. He also received $4.5 million in bonus, $1.9 million in options, $399,000 in stock and $251,000 in all other compensation.His IPG counterpart, Frank Mergenthaler, received nearly $2.8 million, with $750,000 of that amount base salary. The IPG CFO was also given $1.1 million in bonus, $523,000 in stock, $332,000 in options and $149,000 in other compensation.Andrew Robertson, CEO of BBDO Worldwide, was the third highest-paid Omnicom executive, receiving total compensation of $4.6 million, with $900,000 of that amount base salary. Robertson was given a $2.7 million bonus, $540,000 in options, $371,000 in stock and $121,000 in other compensation. At IPG, McCann-Erickson WorldGroup CEO John Dooner took home a bigger paycheck than his boss, Roth, earning a base salary of $1.25 million. Dooner, who was previously IPG's CEO, was given total compensation in 2006 of $4.9 million, with $1.5 million of that a bonus, $1.1 million in stock, $641,000 as a result of a change in pension value and nonqualified deferred compensation earnings, $188,000 in other compensation and $169,000 in options.Jean-Marie Dru, the CEO of Omnicom's TBWA Worldwide, received $4.4 million in total compensation in 2006. He also pocketed a larger paycheck than his CEO, Wren, earning a base of over $1 million. Dru received a $2.4 million bonus, $540,000 in options, $340,000 in stock and $76,000 in other compensation.At IPG, Stephen Gatfield, evp, network operations, CEO, Lowe Worldwide, was given $2.7 million in total compensation. He received a base salary of $878,000, $848,000 in bonus, $422,000 in stock, $302,000 in an additional "bonus," $137,000 in options, $11,000 as a result of the change in pension value and nonqualified deferred compensation earnings, and $73,000 in all other compensation.Tom Harrison, CEO of Omnicom's Diversified Services, received total remuneration of $4.1 million in 2006, $900,000 of it in base salary. He received $2.2 million in bonus, $540,000 in options, $335,000 in stock and $111,000 in other compensation. At IPG, Tim Sompolski, evp, chief human resources officer, was given $1.6 million in total compensation in 2006, $550,000 of which was base salary. He also received $535,000 in bonus, $352,000 in stock, $135,000 in options and $121,000 in other compensation.Philippe Krakowsky, evp, IPG strategy and corporate relations, received $1.6 million, $550,000 of that as base salary. Krakowsky got a $600,000 bonus, $228,000 in stock, $107,000 in other compensation and $74,000 in options.At Omnicom, perks included $246,000 of personal use of corporate aircraft hours for CEO Wren, as well as a $10,000 fee for his tax preparation, $9,000 car allowance and $4,000 medical allowance. CFO Weisenburger was granted $222,000 worth of personal use of that aircraft, $9,000 in car allowance and a health club membership of $3,600. TBWA chief Dru received $17,000 in car lease and insurance and $11,000 for family travel and "professional fees." DAS head Harrison was given $55,000 in premium payments for medical and dental insurance and $32,000 for disability insurance. BBDO CEO Robertson was granted $54,000 in moving expenses, a $24,000 auto lease, $13,000 as a "special bonus," and unspecified club dues and legal services. IPG typically gives its executives an annual automotive allowance of $10,000 and annual financial planning allowance of $2,500. While those managers are given an annual club allowance of $10,000, in 2006 Lowe chief Gatfield received $25,000 in club allowance and Roth $20,000. In addition to payment of premiums for medical and dental coverage, auto allowance and club dues, McCann CEO Dooner received $68,000 for a company car and parking fees and $46,000, which covered hotel stays and expenses for his wife and daughter and financial planning costs. Omnicom's annual meeting will be held on May 22 at its corporate unit, The Integer Group-Denver, Lakewood, Colo. IPG hosts its shareholder gathering on May 24 at the Museum of Television and Radio in New York.—with Andrew McMainsClick here for Omnicom's complete filing.Click here for IPG's complete filing.

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What the Chiefs Made in '06

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Noreen O'Leary