There’sbig news in the world of advertising. Sir Martin Sorrell has stepped down from
WPP, the world’s largest ad
business.
Sorrell had been in
the midst of an unspecified investigation about “personal misconduct and misuse
of company assets.” He has denied the allegations.
WPP provided us with
the following statement.
“Sir Martin Sorrell has stepped down as Chief Executive Officer of
WPP with immediate effect. Robert Quarta, Chairman of WPP, becomes Executive
Chairman until the appointment of a new Chief Executive Officer…Sir Martin will
be available to assist with the transition. The previously announced
investigation into an allegation of misconduct against Sir Martin Sorrell has
concluded. The allegation did not involve amounts that are material…Sir Martin
will be treated as having retired…
The $20.8 billion
British company owns big brands in the marketing and communications world,
including Olgivy & Mather, Young & Rubicam and 400 others. The
company has over 200,000 employees.
73-year-old Sorrell
was largely responsible for growing WPP into the advertising empire,
having founded the business in 1985. He remained at the helm for decades. Some
of its biggest clients include Unilever and Procter & Gamble.
A spokesperson for WPP
provided a statement, attributed to Sorrell. “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.”
The ad business has
changed a lot since Sorrell launched WPP. The biggest budgets have been
overhauled, gradually shifting portfolios to include more online advertising.
WPP’s stock has fallen
22% in the past year amid sluggish growth. Competitors like Omnicom and
Publicis have struggled similarly.
As of last year,
Sorrell was said to have a net worth of 495 million pounds, or over $700
million. His compensation exceeded $100 million in some years.
No comments:
Post a Comment