WPP boss Sir Martin Sorrell quits
Sir Martin Sorrell – the world’s most powerful advertising executive – has abruptly resigned.
His shock exit comes days after the WPP board instigated an investigation into an allegation of “personal misconduct”.
The announcement came through on Saturday night UK time, which was Sunday morning in Asia. The company is now hunting for a new CEO.
Under Sorrell’s 33-year-leadership, WPP went from shopping basked manufacturer Wire and Plastic Products to the world’s most dominant communications group WPP, with extensive interests across the world in media, public relations and creative agencies.
WPP’s media agencies include Mediacom, Mindshare, Essence, and the newly formed Wavemaker, which was created from the merger of MEC and Maxus. Its creative agencies include Ogilvy, JWT and Y&R. Its extensive PR operations include the Ogilvy PR group.
The company has a global market capitalisation of nearly $20bn although this has fallen in recent weeks.
Sorrell’s departure will likely see the company’s global share price pummelled by the market, which has been concerned for some time about the lack of a visible succession plan.
This weekend’s announcement says that businessman Roberto Quarta, who has been WPP’s chairman for the last three years, will stand in as executive chairman.
The company has also named Mark Read, who runs WPP’s digital operation Wunderman, and its European chief operating officer Andrew Scott as joint chief operating officers.
The announcement:
Good evening,
Sir Martin Sorrell has stepped down as Chief Executive Officer of WPP with immediate effect. Roberto Quarta, Chairman of WPP, becomes Executive Chairman until the appointment of a new Chief Executive Officer.
Mark Read, Chief Executive Officer of Wunderman and WPP Digital, and Andrew Scott, WPP Corporate Development Director and Chief Operating Officer, Europe, have been appointed as joint Chief Operating Officers of WPP.
Sir Martin will be available to assist with the transition.
The previously announced investigation into an allegation of misconduct against Sir Martin has concluded. The allegation did not involve amounts that are material.
In accordance with his at-will employment agreement, Sir Martin will be treated as having retired on leaving WPP, as detailed in the Directors’ Compensation Policy. His share awards will be pro-rated in line with the plan rules and will vest over the next five years, to the extent Group performance targets are achieved.
Roberto Quarta said: “Sir Martin has been the driving force behind the expansion of WPP to create the global leader in marketing services. During this time, the Company has been successful because it has valued and nurtured outstanding talent at every level – within and well beyond our leadership teams. On behalf of the Board I would like to recognise these achievements and thank Sir Martin for his commitment to the business over more than three decades.”
Sir Martin Sorrell said: “Obviously I am sad to leave WPP after 33 years. It has been a passion, focus and source of energy for so long. However, I believe it is in the best interests of the business if I step down now. I leave the Company in very good hands, as the Board knows. Mark and Andrew and the management team at all levels have the knowledge and abilities to take WPP to even greater heights and capitalise on the geographic and functional opportunities. I will particularly miss the daily interactions with everyone across the world and want to thank them and their families for all they have done, and will do, for WPP.”
Don’t let the pet door hit you as you crawl out with your tail between your legs.
ReplyBest news all year! Good riddance and about time. Who’s next?
ReplyAnyone thats what comes from the top down at WPP is insecurity, fear and greed.
A stain on the industry for years.
I’ve lost count of the talent that’s left this industry after a taste of an inane WPP office.
ReplySo the Knight has fallen after years of rooling the roost. Change is invetible, the leaders are indispensable and all leaders of networks should realised this. The great Knight once created fourmulas and ratios on how to manage talent which stifled the humanistic values of the network. Profits were high so was greed. Now the unthinkable has happened and the show goes on.. will the new leader run the business differently ? Will numbers run the roost yet again or will there be the human touch in managing this network ? Farewell the great Knight.
ReplyOr maybe he saw a flimsy industry that was easy to take on?
ReplyI’m gobsmacked at the irony of all this. When you sign up at a wpp company you are given an entire fucking booklet…that’s right not a one sheeter, a entire goddamn booklet lecturing you about ethics and financial propriety.
And then you got the guy who kind of wrote that book seemingly implicated for presumably for ignoring his own directives
Just goes to show yet again how there’s one standard for these mofos and another one for the rest of us who make them rich.
ReplyWPP is well reknown for its policies and processes. I have worked with WPP and other networks however WPP stands out as the most detailed and stringent in this area. It only shows that such controls are very much in place as even the CEO is not sparred from this.
Many other networks profess on having good controls and blah blah blah but the effectiveness is still sub par. I have personally experience where internal auditors and controllers of other networks have ‘seasonal effectivess’. If the network is not meeting their numbers, an eye is closed to allow unethical revenues or issues to be recognised and allowed. When times are good, they go for a witch hunt even for the smallest of things in the name of showcasing their worth and complying to some vague legislation requirements.
Well done WPP for ensuring that you walk the talk.
Hope this is a wake up call for all holding companies to start getting their act right consistently.
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