WPP board begins investigation of its CEO Sir Martin Sorrel, says WSJ

MUMBAI: Once the toast of the advertising industry, investors, and shareholders, Sir Martin Sorrell now faces the ignominy of being probed by a law firm, which has been appointed by the WPP board for a potential misuse of assets and personal misconduct, if a report in the Wall Street Journal is to be believed.

The agency group has been under pressure from clients and hungry for business rivals for a while. Its share price has fallen some 35 per cent as companies such as Alphabet (Google) and Facebook have been doing direct deals with brands, cutting agencies such as WPP out of the picture. Additionally, big spenders such as Unilever, Procter & Gamble have also been cutting back on marketing spends in a rapidly disintermediating digital content marketplace.

This has led to WPP reportedly putting up a lackluster performance which in turn has affected its share price. Sorrell was also forced to take a cut in his pay, the amount he was forced to back down from 2017’s 48 million pounds sterling, will become clearer in the next few days as it announces its financial performance.

A Saatchi & Saatchi finance executive in the seventies and eighties, Sorrell went about building what would become a global tour de force under the umbrella of a company called Wire & Plastic Products. He acquired 18 different below the line agencies over three years, before making an audacious $566 million dollar bid for J Walter Thompson and then $825 million for Ogilvy & Mather. He acquired both of them. He snared two other agencies Young & Rubicam and then Grey Worldwide on the follow through. Among the other agencies and communication services providers under WPP today include: Wunderman, Kantar Group, Hill & Knowlton, Burson-Marsteller, GroupM, Cohn & Wolfe, Brand Union, Buchanan UK among others.

WPP as a group employs close to 200,000 employees worldwide and reported a revenue of 15.265 billion pounds sterling, with an operating income of 1.908 billion pounds sterling with net income standing at 1.912 billion pounds sterling in 2017.

Investors have been baying for Sorrell’s blood for some time now with the agency not coming with a solid plan to revive growth. Speaking to in Amsterdam a couple of years ago Sorrell had said: “I only own two per cent of the company; but I am identified with the company. I will carry on as long they will let me. WPP is not a matter of life or death for me, it is more than that. They will carry me out to the glue factory.”

Latest Reads
Namaste Trump: Bobble launches a series of GIFs, and Stickers expressing and celebrating ‘Modi-Trump’ and US – India relations

MUMBAI: India is all geared up to give United States President Donald Trump and his wife Melania a grand welcome. The historic trip is viewed as a step to further strengthen the US-India strategic partnership and highlight the strong and enduring bonds between the American and Indian people. 

MAM Marketing MAM
NexBrand’s Brand Vision Summit honours brands

NexBrand’s Brand Vision Summit 2020, powered by Kamdhenu, was held on February 20 in Mumbai. The fifth edition of the event saw top names from India’s corporate and entertainment sectors being felicitated for their work through the year. This year, Brand Vision Summit had Anurag Thakur, MOS –...

MAM Marketing MAM
Luminous Power Technologies launches new social media campaign #BeExamReady

Luminous Power Technologies, a powerful and trustworthy brand with a wide range of innovative products in the power backup, home electrical and residential solar space, announces special #Be Exam Ready social media campaign with brand ambassador, Sachin Tendulkar.

MAM Marketing MAM
MX Player's integrated campaign #IsLoveComplicated reaches over 52 million Indians

On the occasion of Valentine’s Day, while most brands sought to highlight love stories that end with happily ever after, leading entertainment streaming platform - MX Player decided to bring to light the ‘reality’ of love in a modern day relationship.

MAM Marketing MAM
Reliance Entertainment appoints Prabhat Choudhary to head WWO

Reliance Entertainment has roped in noted marketing communications strategist, Prabhat Choudhary, to head World Wide Open (WWO), its in-house digital movie marketing & media buying arm.

MAM Marketing MAM
OK Tested all set for its first live event

NEW DELHI: OK Tested, ScoopWhoop Media's newest lifestyle video channel, is all set for its first live event, The Fam Fest 2020. As the name suggests it's not just a fan meet, it's a meeting of people that have supported ScoopWhoop Media on this journey to something so much more tangible than likes...

MAM Marketing MAM
Bipin R Pandit’s 15th edition of Khumaar enthralls Mumbai audience

MUMBAI: Bipin R Pandit’s  musical extravaganza Khumaar that happened on Friday 14 February 2020 was a packed house show attended by 800 plus audience at the St Andrew’s Auditorium, Bandra, Mumbai. The valentine special show was dedicated to romantic songs.

MAM Media and Advertising People
Tata Nexon EV takes experiential marketing to next level

MUMBAI: Tata Motors has partnered with Godrej L’Affaire, a luxury lifestyle experiential platform by the Godrej Group, to exhibit and demonstrate the capabilities of its recently launched Tata Nexon EV- India’s Own Electric SUV. The company will set-up an experience zone at the Godrej L'Affaire to...

MAM Marketing MAM

MUMBAI: While India is getting ready to say ‘Namaste Trump’ on the US president’s first state visit to the country, WION – India’s first International News channel is making news.  The detailed coverage by WION was even retweeted by President Donald Trump!

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required