In a year when the lion's share of John Wren's $24 million in total compensation was linked to performance, the Omnicom CEO's second in command for most of a prosperous 2014, Randy Weisenburger, received no cash and stock-based incentives, pocketing just $1.1 million, of which $859,125 was base salary.
That's more than a little ironic in a business world in which top corporate execs are routinely scrutinized for the huge sums they receive. Now, the former CFO's paltry payout, disclosed in Omnicom's newly released annual meeting proxy statement, is raising questions about his departure from the company after 16 years. Weisenburger unexpectedly left his role on Sept. 22, after Omnicom said he decided to return to his Wall Street roots. (At the beginning of this year, he launched his own investment firm in Greenwich, Conn.)
"The incentive compensation programs at [Omnicom] that I was a part of required that I continue to be employed at the payment date—generally February or March of the following year—to receive the payments," Weisenburger said, explaining why he didn't receive a bonus in 2014 and emphasizing that it was his decision to resign. "They were not pro rata. The same with the stock programs—they have vesting dates. When I decided to leave, I knew those programs would be forfeited."
But some financial observers find it odd that there wasn't a pro rata arrangement, given Weisenburger's tenure at the company and Omnicom's performance last year. He was formerly Omnicom's second highest-paid exec, but his $1 million paycheck in 2014 compares with nearly $12 million in 2013, of which almost $11 million came from incentive compensation. At Omnicom, that trailed only Wren, who earned more than $18 million in 2013, including nearly $17 million in incentive compensation.
"The info suggests there's more here than meets the eye and probably has to do with the circumstances of departure," said John Challenger, CEO at global outplacement and career transitioning firm Challenger, Gray & Christmas, noting that he has no specific knowledge of Weisenburger's situation. "You're probably seeing indicators here of a departure that wasn't easy. Everyone wants things not to turn into big messes. They just want them to go away"
An Omnicom rep declined to comment on Weisenburger's exit or his 2014 compensation.
In the current proxy for the company's May 18 annual meeting in Colorado, Omnicom said Philip Angelastro, who succeeded Weisenburger as CFO, earned $5 million in total compensation. Among other top corporate execs, Jonathan Nelson, CEO of Omnicom Digital, received $3.4 million; general counsel Michael O'Brien received $2.8 million; and treasurer Dennis Hewitt received $1.4 million.
Last year was a good year at Omnicom despite the failure of its merger with Publicis Groupe. The company posted an increase in net income of 11 percent on a 5 percent rise in revenue. In the proxy's introduction to executive pay, Omnicom said its "compensation decisions reflected our performance" and after discussing those positive results, tied them directly to the efforts of the company's small team of elite executives. While Weisenburger is included in that group, his 2014 contributions are not discussed.
Weisenburger stands to receive $1 million annually as part of his 10-year severance package from Omnicom.
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