Sorrell also said that the year 2017 “was not a pretty year” for the company but has also refuted that it was because his agencies were kept out of the deals between advertisers and Facebook and Google.
It seems like Martin Sorrell’s tough grip in the form of a chief executive of WPP, the advertising giant is majorly under threat after the company has hired a law firm so as to probe an accusation of personal misconduct.
Sorrell, however, has “unreservedly” has dismissed the allegation which is deemed to have involved the improper use of company funds. Nonetheless, the investigation will surely mount pressure on Sorrell, who is one of the most popular and most highly paid business tycoons.
Sorrell had founded WPP as a two-man set-up in an office in London back in the year 1985 and during his tenure of three decades of running the business the company has come out to be the world’s largest marketing services group which has around 1,34,000 staff in more than 100 countries.
The company stated, “The board of WPP has appointed an independent counsel to conduct an investigation in response to an allegation of personal misconduct against Sir Martin Sorrell, chief executive officer of WPP”.
The company further added, “The investigation is ongoing. The allegations do not involve amounts which are material to WPP.”
Sorrell, on the other hand, stated that he has rejected the allegation made against him but he says that he understands that the company had to investigate the matter. He said, “WPP is investigating an allegation of financial impropriety by me, specifically as to the use of company funds”.
He further added, “This allegation is being investigated by a law firm. I reject the allegation unreservedly but recognize that the company has to investigate it. I understand that this process will be completed shortly. Obviously, I shall play no part in the management of the investigation underway.”
Moreover, who will replace Sorrell eventually has been a question at the annual shareholder meeting of the company. The company has maintained a list of prospective external and internal candidates that is constantly monitored and updated, nevertheless, Sorrell has never signified that he may be willing to step back.
Aside of this, the shares of the company seem to have come under immense pressure as last month the company had stated that it was its worst growth since the advertising recession that happened in the year 2009. The shares fell by 2% in early trading today in response to the probe that is underway.
Sorrell also said that the year 2017 “was not a pretty year” for the company but has also refuted that it was for the reason that his agencies were kept out of the deals between advertisers and Facebook and Google.
Sorrell has been one of the highest paid chief executives who has earned over £200m in the last five years, as so has been stated by WPP and it says that the company has spent more than $6bn (£4.4bn) of its clients’ advertising and marketing money with Google, which was its one biggest investment made last year with a rise of 10%. Facebook had received around $2.1bn of its ad spend last year with a rise of 30 percent.
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