Advertising titan Sir Martin Sorrell quits WPP after three decades
Sir Martin Sorrell has abruptly quit the advertising giant WPP, ending the three-decade reign of one of the FTSE 100’s longest-serving and best-known bosses.
His exit, with immediate effect, which comes after an investigation into an allegation of personal misconduct, calls time on one of the most distinguished careers in the advertising industry.
Sir Martin, 73, transformed WPP from a tiny company that made wire baskets into the world’s biggest advertising group.
His departure came as the company said the investigation into his conduct, revealed earlier this month, had concluded. WPP did not reveal the results of the probe, but said the allegation against him “did not involve amounts that are material”.
When the investigation first emerged, Sir Martin said he rejected the allegation “unreservedly”. WPP said Roberto Quarta, its chairman, would become executive chairman until a new chief could be found. Mark Read and Andrew Scott, two other executives, have been made joint chief operating officers.
WPP said Sir Martin will “assist with the transition”. He will be treated as having retired and continue to receive share awards under the company’s compensation policy.
Sir Martin was the FTSE 100’s highest paid chief executive last year, and once received an annual package of more than £70m. He remains one of the biggest shareholders in WPP, with a stake worth around £200m.
He 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.”
Mr 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. The departure of one of the business world’s most famous names comes amid a turbulent time for WPP. The company has recently seen its share price fall to its lowest level in years amid faltering growth and fears that the digital giants Google and Facebook are cutting out WPP’s media buying agencies.
Given Sir Martin’s lengthy tenure and influence at WPP, finding somebody to fill his shoes is likely to be a demanding job. Mr Read, who runs WPP digital agency Wunderman, has been floated as one candidate.
Mr Scott, is the company’s corporate development chief and chief operating officer for Europe.
