Source: Adweek, TheDrum
WPP has hired independent counsel to investigate claims of “personal misconduct” made against CEO Sir Martin Sorrell, which come after a sharp decline of WPP’s shares, Adweek reported. The Wall Street Journal first wrote about the investigation Tuesday afternoon.
„The Board of WPP has appointed independent counsel to conduct an investigation in response to an allegation of personal misconduct against Sir Martin Sorrell, Chief Executive Officer of WPP. The investigation is ongoing,“ WPP’s spokesperson wrote in a statement. According to The Wall Street Journal‘s sources, the holding company was looking into possible misuse of company assets, and the report follows news that Sorrell, who has led WPP for more than 30 years, took a significant pay cut from WPP. He received a bonus of around $14 million for 2017 compared with $58.5 million the previous year. That followed a disappointing financial performance from the holding company in 2017 and WPP’s steepest decline in stock value since 1999.
After the reports, Sir Martin Sorrell adamantly denied delegations, launching a defence of his conduct as chief executive of WPP. He issued a statement, writing: „Reports in the media have stated that WPP is investigating an allegation of financial impropriety by me, specifically as to the use of company funds. This allegation is being investigated by a law firm. I reject the allegation unreservedly but recognise that the company has to investigate it. I understand that this process will be completed shortly.”
