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Employee Benefit Obligations (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure Of Pension Costs [abstract]  
Pension Costs The Group’s pension costs are analysed as follows:
202320222021
£m£m£m
Defined contribution plans198.1 191.3 162.8 
Defined benefit plans charge to operating profit15.0 13.5 14.9 
Pension costs (note 5)
213.1 204.8 177.7 
Net interest expense on pension plans (note 6)
4.3 2.2 1.8 
217.4 207.0 179.5 
Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans At 31 December, the fair value of the assets in the pension plans and the assessed present value of the liabilities in the pension plans are shown in the following table:
202320222021
£m%£m%£m%
Equities24.2 9.3 26.7 6.2 31.8 5.8 
Bonds170.2 65.7 208.8 48.5 259.7 47.0 
Insured annuities3.0 1.2 149.2 34.7 222.5 40.3 
Property1.3 0.5 1.4 0.3 1.0 0.2 
Cash18.3 7.1 18.1 4.2 15.3 2.8 
Other42.0 16.2 26.3 6.1 21.8 3.9 
Total fair value of assets259.0 100.0 430.5 100.0 552.1 100.0 
Present value of liabilities(381.2)(552.6)(688.5)
Deficit in the plans(122.2)(122.1)(136.4)
Irrecoverable surplus— — (0.2)
Net liability1
(122.2)(122.1)(136.6)
Plans in surplus2
13.7 15.4 30.1 
Plans in deficit(135.9)(137.5)(166.7)
Notes
1    The related deferred tax asset is discussed in note 16.
2 The net asset related to plans in surplus of £13.7 million for 31 December 2023 (2022: £15.4 million) is recorded in the consolidated balance sheet within other debtors. The corresponding figures for 31 December 2021 are recorded in provision for post-employment benefits.
Surplus/(Deficit) in Plans by Region
All plan assets have quoted prices in active markets with the exception of other assets.
202320222021
Surplus/(deficit) in plans by region£m£m£m
UK0.7 2.3 0.4 
North America(29.7)(37.1)(28.1)
Western Continental Europe(60.1)(52.6)(74.0)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe(33.1)(34.7)(34.7)
Deficit in the plans(122.2)(122.1)(136.4)
Funded and Unfunded Pension Plans By Region
The following table shows the split of the deficit at 31 December between funded and unfunded pension plans.
2023
Surplus/
(deficit)
£m
2023
Present
value of
liabilities
£m
2022
Surplus/
(deficit)
£m
2022
Present
value of
liabilities
£m
2021
Surplus/
(deficit)
£m
2021
Present
value of
liabilities
£m
Funded plans by region
UK0.7 (9.2)2.3 (155.5)0.4 (231.9)
North America7.4 (182.9)4.1 (208.5)20.1 (237.9)
Western Continental Europe(34.1)(70.6)(29.1)(67.9)(45.1)(87.6)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
(5.4)(27.6)(4.1)(25.4)(6.4)(25.7)
Deficit/liabilities in the funded plans
(31.4)(290.3)(26.8)(457.3)(31.0)(583.1)
Unfunded plans by region
North America(37.1)(37.1)(41.2)(41.2)(48.2)(48.2)
Western Continental Europe(26.0)(26.0)(23.5)(23.5)(28.9)(28.9)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe(27.7)(27.8)(30.6)(30.6)(28.3)(28.3)
Deficit/liabilities in the unfunded plans
(90.8)(90.9)(95.3)(95.3)(105.4)(105.4)
Deficit/liabilities in the plans
(122.2)(381.2)(122.1)(552.6)(136.4)(688.5)
Weighted Average Assumptions Used For Actuarial Valuations The main weighted average assumptions used for the actuarial valuations at 31 December are shown in the following table:
2023202220212020
% pa% pa% pa% pa
UK
Discount rate1
4.7 5.1 1.8 1.3 
Rate of increase in pensions in payment2.5 4.4 4.5 4.4 
Inflation3.1 3.0 3.2 2.8 
North America
Discount rate1
4.9 5.2 2.6 2.0 
Rate of increase in salaries2
n/an/an/a3.0 
Western Continental Europe
Discount rate1
3.4 4.1 1.2 0.9 
Rate of increase in salaries2.5 2.5 2.3 2.2 
Rate of increase in pensions in payment2.0 2.0 1.8 1.8 
Inflation2.0 2.0 1.7 1.7 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
Discount rate1
6.5 6.4 5.3 4.2 
Rate of increase in salaries6.2 5.7 5.6 5.2 
Inflation3.4 3.4 3.7 3.7 
Notes
1Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds.
2The salary assumptions are no longer applicable to the US as all plans were frozen. Active participants will not accrue additional benefits for future services under these plans.
Life Expectancies For Defined Benefit Pension Plans
At 31 December 2023, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows:
Years life expectancy after
age 65		All
plans		North
America		UKWestern
Continental
Europe
Other1
Current pensioners
(at age 65) – male		21.822.023.421.120.3
Current pensioners
(at age 65) – female		23.623.424.924.225.1
Future pensioners
(current age 45) – male		23.523.425.423.420.3
Future pensioners
(current age 45) – female		25.224.827.026.025.1
Note
1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments
The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next ten years. The duration corresponds to the weighted average length of the underlying cash flows.
All
plans		North
America		UKWestern
Continental
Europe
Other1
Weighted average duration of the defined benefit obligation (years)8.07.46.310.25.9
Expected benefit payments over the next ten years (£m)
within 12 months
30.2 18.5 0.7 6.0 5.0 
in 2025
28.3 18.1 0.6 6.0 3.6 
in 2026
29.2 17.8 0.6 6.2 4.6 
in 2027
29.0 18.7 0.5 6.2 3.6 
in 2028
27.6 15.7 0.5 7.0 4.4 
in the next five years
144.4 83.7 1.6 33.2 25.9 
Note
1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
Sensitivity Analysis of Significant Actuarial Assumptions
(Decrease)/increase
in benefit obligation
20232022
Sensitivity analysis of significant actuarial assumptions£m£m
Discount rate
Increase by 25 basis points:
UK(0.1)(3.6)
North America(3.8)(4.4)
Western Continental Europe(2.3)(2.0)
Other1
(0.5)(0.5)
Decrease by 25 basis points:
UK0.2 3.8 
North America3.9 4.6 
Western Continental Europe2.4 2.1 
Other1
0.5 0.6 
Rate of increase in salaries
Increase by 25 basis points:
Western Continental Europe0.6 0.5 
Other1
0.4 0.5 
Decrease by 25 basis points:
Western Continental Europe(0.6)(0.5)
Other1
(0.5)(0.5)
Rate of increase in pensions in payment
Increase by 25 basis points:
UK0.2 0.7 
Western Continental Europe1.2 1.1 
Decrease by 25 basis points:
UK— (0.6)
Western Continental Europe(1.2)(1.0)
Life expectancy
Increase in longevity by one additional year:
UK0.7 6.8 
North America3.3 4.2 
Western Continental Europe3.0 2.6 
Note
1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI)
The following tables show the breakdown of the pension expense between amounts charged to operating profit and amounts charged to finance costs:
202320222021
£m£m£m
Service cost1
12.2 10.4 12.6 
Administrative expenses2.8 3.1 2.3 
Charge to operating profit15.0 13.5 14.9 
Net interest expense on pension plans4.3 2.2 1.8 
Charge to profit before taxation for defined benefit plans19.3 15.7 16.7 
Note
1Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments.
The following table shows the breakdown of amounts recognised in other comprehensive income (OCI):
202320222021
£m£m£m
Return on plan assets (excluding interest income)6.5 (127.6)(29.3)
Changes in demographic assumptions underlying the present value of the plan liabilities(0.5)0.6 (3.6)
Changes in financial assumptions underlying the present value of the plan liabilities(13.8)143.5 31.1 
Experience (loss)/gain arising on the plan liabilities
(1.3)(0.1)15.7 
Change in irrecoverable surplus— 0.2 0.4 
Actuarial (loss)/gain recognised in OCI
(9.1)16.6 14.3 
Movement in Pension Plan Assets and Liabilities
The following table shows an analysis of the movement in the pension plan liabilities for each accounting period:
202320222021
£m£m£m
Plan liabilities at beginning of year552.6 688.5 772.7 
Service cost1
12.2 10.4 12.6 
Interest cost20.5 15.5 12.0 
Actuarial loss/(gain):
Effect of changes in demographic assumptions0.5 (0.6)3.6 
Effect of changes in financial assumptions13.8 (143.5)(31.1)
Effect of experience adjustments1.3 0.1 (15.7)
Benefits paid(37.5)(52.0)(59.5)
(Gain)/loss due to exchange rate movements
(16.7)40.4 (6.1)
Settlement payments2
(163.2)(8.7)(0.3)
Other3
(2.3)2.5 0.3 
Plan liabilities at end of year381.2 552.6 688.5 
Notes
1    Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments.
2    During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145.0 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement.
3    Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented.
The following table shows an analysis of the movement in the pension plan assets for each accounting period:
202320222021
£m£m£m
Fair value of plan assets at beginning of year430.5 552.1 616.6 
Interest income on plan assets16.2 13.3 10.2 
Return on plan assets (excluding interest income)6.5 (127.6)(29.3)
Employer contributions19.8 24.0 16.7 
Benefits paid(37.5)(52.0)(59.5)
(Loss)/gain due to exchange rate movements
(12.4)31.5 (0.6)
Settlement payments1
(163.2)(8.7)(0.3)
Administrative expenses(2.8)(3.1)(1.8)
Other2
1.9 1.0 0.1 
Fair value of plan assets at end of year259.0 430.5 552.1 
Actual return/(loss) on plan assets
22.7 (114.3)(19.1)
Notes
1During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145.0 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement.
2    Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented.