WPP trimmed CEO Martin Sorrell's 2012 salary 20 percent and plans a 34 percent cut this year relative to his 2011 pay, according to the ad/PR combine's annual report released today.

The move comes follows shareholder protest against Sorrell’s 2011 remuneration that was deemed too high relative to the U.K. market.

"Informed by extensive consultation with many of our major share owners, significant reductions have therefore been made to the CEO's remuneration package," says the report.

Sorrell’s short-term incentive opportunity was reduced from $5.1M to $4M with maximum payout chopped from $10.4M to $8M.

Sorrell's base this year is pegged at $1.8M and the impact of the changes is a "reduction in the CEO's target pay to result in it being at a level similar to that received from 2007 to 2010."

In a letter to shareholders, Jeffrey Rosen, chair of the compensation committee, made it plain that the salary cuts "in no way reflects the committee's or the board’s view of the importance of the CEO to the company and its success and his unique mix of skills, and for which numerous shareowners have express their appreciation."

Sorrell chalked up total compensation of $28.2.6M last year, up 47.6 from the year earlier period.