PARIS, April 17 (Reuters) - Publicis isestablishing a bonus and retention programme for 200 of its keyexecutives based on whether the advertising agency reaches itsgrowth and margin targets in the next three to four years.
Coming at a time of tough competition for talent and highsalaries in the advertising business, the programme rewardsexecutives with free shares of Publicis and further stockoptions if key goals of the group are met.
Chief Executive Maurice Levy will not take part. His pay andbonus became a contentious issue and fodder for media criticismin France last year during the presidential elections.
"Given the increasing competitiveness for talent in theglobal market, it is crucial for executives to be directlyinvolved in the group's successes," said Levy in a statement onWednesday.
"Co-investment in the group is the expression of executives'strong commitment as it requires taking a real risk withpersonal funds."
Publicis, which competes with WPP and Omnicom, saw weak organic revenue growth of 1.3 percent in thefirst quarter, dragged down by sluggish demand inrecession-plagued Europe. It aims for organic growth in 2013 of3.2-3.6 percent and for margins to improve.
In the medium term the group has pledged to improve itsoperating margins by 200-400 basis points compared with 2011levels of 16 percent.
The group is holding an investor day in London on April 23.