Martin Sorrell, the powerful CEO who has helped shape WPP into the world's largest advertising and PR firm, has resigned after allegations of misconduct. Reportedly, the allegations involved misuse of company funds and also personal misconduct. Reuters report further claims that analysts and peers have speculated that the Group could be broken without Sorrell at the helm. To fill the leadership vacuum while a successor is found, Roberto Quarta, the WPP chairman, will take on the role of executive chairman.
Sorrell ran WPP for 33 years and is one of the most prominent figures to have shaped the advertising industry. According to Guardian, Sorrell, will be treated as retired and he will be eligible to receive payouts related to 1.6m shares in a number of award plans that will vest over the next five years. According to a letter in Guardian, Sorrell, in an email to staff, shares, “I shall miss all of you greatly. As a founder, I can say that WPP is not just a matter of life or death, it was, is and will be more important than that.”
Shares in WPP fell 4 percent at the open on Monday after Sorrell announced to quit, leaving the group without a boss at a time of huge change in the industry. Shares in the group, which are already down 30 percent this year, were down 4 percent according to the early morning trades.
(With additional inputs from Reuters)
(The above story first appeared on LatestLY on Apr 16, 2018 04:02 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).