One of the world's largest marketing and advertising firms has held its AGM in Dublin, where it announced a weaker than expected trading update.
WPP relocated its headquarters to Ireland last year in protest at planned changes to the British tax system. It claims that the move will save 10% of its profits. The company employs more than 130,000 people worldwide.
Chief executive Martin Sorrell told RTE News the move to Dublin had been a very difficult one because of the company's close ties to London, and that he had endured personal criticism for the decision. He said that Ireland's low rate of corporation tax meant that WPP would save between £70m and £80m.
Mr Sorrell said that he expected a global economic recovery 'of sorts' in 2010. He said that chief executives of major companies on both sides of the Atlantic were 'feeling better' about the outlook but that this was not reflected in their actions. He said markets tended to improve six to nine months ahead of the real economy and that next year's recovery would be anaemic.
An update released at the start of the meeting said WPP's like-for-like revenue in the first four months of this year was down 6.7% from a year earlier. The like-for-like figure strips out the impact of acquisitions and currency movements.
WPP said the pattern of trading continued to be as difficult as in the first quarter, although April had been worse.
Chief executive Martin Sorrell said in April it would not meet its full-year forecasts after first quarter like-for-like sales fell 5.8% as companies slashed marketing budgets.
WPP said the economic pressure was most keenly felt in the US, Britain and continental Europe, although Eastern continental Europe still showed revenue growth for the first four months of 2009.
All WPP's resolutions at the Dublin AGM were passed. These included the directors' remuneration and bonus package which had drawn criticism from some shareholder groups.
Under the approved scheme, senior WPP managers who invest in the company's shares such as Mr Sorrell could be rewarded with up to five times as many free shares, as long as the firm hits key performance targets. WPP had defended the scheme, saying that executives would have to make an investment and take a financial risk.
