Martin Sorrell, who built WPP into the world’s biggest advertising agency through 33 years of dealmaking, has quit after an allegation of personal misconduct.
The departure of the CEO who built a two-man outfit into one of Britain’s biggest companies with 0.2 million staff in 112 countries leaves WPP without a boss at a pivotal time for the industry and when the group is under great strain.
WPP stunned the market last week when it said it had appointed lawyers to investigate alleged misconduct by Sorrell. He denied the allegations but in a letter to WPP staff published late on Saturday he said the “current disruption” was “putting too much unnecessary pressure on the business”.
He said he had decided that “in your interest, in the interest of our clients, in the interest of all shareowners, both big and small, and in the interest of all our other stakeholders, it is best for me to step aside”.
Chairman Roberto Quarta will become executive chairman until a new chief executive is found, while Mark Read, a WPP digital executive, and Andrew Scott, chief operating officer, Europe, have been appointed as joint chief operating officers.
Read, who previously sat on WPP’s main board, is well regarded in the industry while Scott was involved in its acquisition strategy and was not involved with clients.
The company will consider internal and external candidates for the top job in a process that could take several months.
“Obviously I am sad to leave WPP after 33 years,” Sorrell said in a statement. “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.”
WPP said the investigation, which regarded financial impropriety, had concluded. It made no further comment but repeated a previous statement that the allegation did not involve amounts that were material to the company.
A source close to Sorrell said he had been unhappy with how the investigation was handled, leaving him uncertain whether he could work with the board again.
Analysts have speculated that the sprawling group, which was being restructured after a year of lower spending from some clients, could now sell off some assets if led by different management.
