PARIS, April 17 Publicis is
establishing a bonus and retention programme for 200 of its key
executives based on whether the advertising agency reaches its
growth and margin targets in the next three to four years.
Coming at a time of tough competition for talent and high
salaries in the advertising business, the programme rewards
executives with free shares of Publicis and further stock
options if key goals of the group are met.
Chief Executive Maurice Levy will not take part. His pay and
bonus became a contentious issue and fodder for media criticism
in France last year during the presidential elections.
"Given the increasing competitiveness for talent in the
global market, it is crucial for executives to be directly
involved in the group's successes," said Levy in a statement on
"Co-investment in the group is the expression of executives'
strong commitment as it requires taking a real risk with
Publicis, which competes with WPP and Omnicom
, saw weak organic revenue growth of 1.3 percent in the
first quarter, dragged down by sluggish demand in
recession-plagued Europe. It aims for organic growth in 2013 of
3.2-3.6 percent and for margins to improve.
In the medium term the group has pledged to improve its
operating margins by 200-400 basis points compared with 2011
levels of 16 percent.
The group is holding an investor day in London on April 23.