Source: TheGuardian
Departure of Sir Martin Sorrell from WPP was announced on Saturday night as WPP concluded its internal investigation into an allegation of personal misconduct against the long-serving CEO. In the wake of this news questions of his successor became louder, and investors started wavering on world’s largest advertising holding company.
The shares price dropped by 6.5% on Monday, adding pressure on the troubled giant which already saw a significant drop after poor 2017. results.
Sorrell, 73, has “unreservedly denied” the misconduct allegations and WPP’s board has said it will not be publishing the outcome of the investigations into them by an independent law firm, stating simply they had concluded the investigation and had no further comment to make.
Some speculations appeared that Sorell could start a new ad company, after it was revealed that he did not have a non-compete clause in his exit deal from WPP, according to Financial Times, but it is still early to speculate on that.
Sorrell founded WPP 33 years ago and was a pivotal figure not only in the company, but the industry at large, so the question of his successor is a tricky one. It will not be easy task to find someone who will bring the same level of synergy to the company, but the most viable internal candidates according to some informed sources are Mark Read, the chief executive of Wunderman and WPP Digital, and Andrew Scott, a top executive at WPP’s European operation, who were appointed WPP’s joint chief operating officers following Sorrell’s departure on Saturday.
