People sometimes ask, ‘So why is there a perception of advertising as a generally badly-run business with slack management  living off outdated service and remuneration systems?’

Gee, I don’t know. Could it be anything to do with stories like this one in Ad Age?

Ad Age reports that, while IPG has lost $2 billion over the last 5 years, its top 5 executives were paid $124 million over this period. $2 billion. That’s a big loss. Shareholders might have been better off putting the money into something less risky than advertising, like Nigerian get-rich-quick schemes. Interpublic said, "The large difference between the potential and realized value of past awards reflects the company’s performance and is both appropriate and in keeping with the intent of incentive compensation." So, they’re saying, the fact that execs only trousered $124 million (an average of $2.8 million p.a. each), not the $232 million they would have made if they achieved targets, is an indication that their performance-related compensation scheme works. Must have been tough to forego those extra few millions that can make all the difference.

No wonder client procurement people give us a tough time in fee negotiations. They may get the impression that all agencies are run in this way. Must go – I have to catch the helicopter back to my trout farm.