WPP Chairman Roberto Quarta, facing shareholder revolt over the departure of former chief Executive sir Martin Sorrell, after an influential Advisory group glass Lewis, recommended investors vote against the re-election at the annual meeting of the advertising giant next month.
In a report to investors, glass Lewis said it had “serious reservations” about the issues, including the failure to disclose the results of an investigation into personal misconduct that led Sorrell to resign – so to classify it as a “good leaver” to hold up to 20 million pounds in the future, the share of payments to a and bad succession planning.
Glass Lewis also recommended investors reject the pay report WEC, which saw Sorrell paid last year £14m, because of a lack of understanding of his departure.
The Advisory body also criticized the method of Qarth, who is also the head of the nominating Committee of wpp, has prepared in advance for life after the founder of the company after 33 years.
“We have a problem of the harbour, as the transparency and efficiency of the succession process,” said glass Lewis. “Despite previous assurances, we believe that the nominating Committee had failed properly to prepare for the replacement of sir Martin. Our concern is enhanced by the opaque nature of the inquiry, sir Martin [and] state its good leaver’. There is no Additional information regarding the retirement of sir Martin, we believe that the shareholders are not able to determine to what extent it should be considered as a ‘good leaver’”.
VES has always maintained that was always there potential internal candidates, including CCD digital chief, mark read, who is currently working in business day after day together with his colleague Andrew Scott, as well as a “constantly updated list of external candidates”.
Tim Armstrong, head of the oath, a subsidiary of Verizon, which is owned by AOL and Yahoo, has been cited as a potential successor.
Glass Lewis also highlighted the increased burden of Kvarta – he is also Chairman of Smith & nephew, the FTSE 100 medical equipment manufacturer which has recently also been changes in leaders as poor.
Subscribe for daily business today email or follow the business Guardian on Twitter @BusinessDesk
The press Secretary said the WPP Sorrell was “dealt with in accordance with his contract, and in accordance with the approved policy, the compensation and stock rules.”
The press Secretary added that a vote against Qarth is not in the interests of investors, at a time when wind turbines has no head, and some analysts argue that the best course of action is £22 billion-plus collapse of the ad group.
“Recommend to vote against Roberto Quarta against the interests of investors in such an important time when the business needs stability until, until we appointed a new chief Executive”, – said the press-Secretary of the WEC. “Investors have shown support for WPP’s share price grows by 18% since the retirement of sir Martin Sorrell this.”