Martin Sorrell, WPP CEO for the past three decades, announced on April 14 he was leaving the company in a letter to employees, according to CNN.
“When I look into the future of the company, I see that the current disruption we experience is causing unnecessary pressure. For your sake, for the benefit of the client, for the benefit of shareholders, both large and small, and for the benefit of all other stakeholders, I would best resign, ”Mr. Sorrell wrote. .
The WPP said last week that the company’s board had hired an independent consultant to conduct an investigation into Mr Sorrell’s misconduct. The WPP stated that “the allegations did not involve a significant amount of money to the company” and gave no further details.
According to the Wall Street Journal, it is likely that the investigation was targeted to clarify whether Mr. Sorrell was “abusing company assets”. On his part, Mr. Sorrell said that he “completely” rejected any inappropriate action.
Mr. Sorrell’s letter of resignation did not directly address the allegations or the investigation. The departure of WPP chief executive comes at a time when the company is in trouble. Last month, WPP revealed that its shares have fallen more than 20% in the past year.
The advertising agency that owns 400 advertising agencies large and small, including Ogilvy & Mather, said revenue this year will not change and long-term profit growth could drop to 5%.
Advertising spending from WPP’s largest clients, including Ford, HSBC, Unilever and Protec & Gamble (P&G), is lower than last year’s average and is not expected to improve.
It is known that last year Mr. Sorrell earned £ 70 million (about $ 98 million) and £ 48 million (about $ 68 million) in 2016. The people who will replace Mr. Sorrell’s position are Mark Read and Andrew Scott, both have worked at the WPP for almost two decades.
* Source: Youth