WPP, the world's biggest advertising group, will be awarding bonuses to staff despite the economic downturn from the pandemic.
The rewards come with full year results expected to be lower this year by between 8.5% and 10.7%.
During a briefing to analysts, the company was asked by Sarah Simon of investment bank Berenberg: "You alluded earlier on to salary inflation being kind of limited this year. How are you thinking about bonuses? And what have you been accruing so far if you think about it kind of year-on-year?"
CFO John Rogers replied that it's been a challenging year but the company wanted to reward colleagues for their significant contributions.
He called out managing costs and driving performance in a very difficult market.
"So we do want to pay some form of bonus this year," Rogers told the analysts.
"Clearly that bonus will be lower than it's been in historical years for the obvious reasons but it won't be zero either.
"But obviously at this stage we can't really comment much more than that other than to say that we'll come back at the yearend and provide you with more detail on that."
CEO Mark Read inidcated that senior executives may not be in line for short term bonuses: ".. I think that's more for the company overall ... "
Rogers agreed. "I think Mark and I both accept the fact that it's challenging for the two of us (to take a bonus), but we want to nonetheless reflect the performance of many of our more junior colleagues given the sacrifices and the contributions that they've made towards the business."
In Australia,WPP AUNZ has restored full pay to staff whose pay was cut in March during the depths of the economic fallout.
However, some in the industry are still working reduced weeks.
Others have been paid back what they agreed to sacrifice during the pandemic.
At independent agency Cummins&Partners those who took pay cuts, mostly between 10% and 20% but up to half for partners, are getting back what they lost over the six months.
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