WPP has hired a new York recruiting firm how to start a global search to replace founder and chief Executive sir Martin Sorrell.
Russell Reynolds, the five largest global Executive search firms, is work with Frances Illingworth, WPP head set.
The transition to external Executive search firms are very rare for wpp, which has traditionally engaged in his Executive Suite in the house.
Departure Sorrell of wpp in prompted a leading rating Agency Moody’s to downgrade the Outlook on the group, citing problems including separation, loss of customers and poor Performance compared to competitors.
The downgrade from “stable” to “negative”, as the 11-strong Council, the WEC was going to meet on Tuesday with the task of finding a successor to Sorrell high on the agenda.
“Moody’s notes the high-profile departure of sir Martin Sorrell raises concerns about the future strategy and shape of Group, increases in retention of risk, and may inhibit the ability of the wpp to meet its 2018 guidance,” said Christian AZ Moody’s assistant Vice President.
Wpp last year issued a number of warnings about the growth of on the way to reporting in the worst financial year after the recession in 2009. He also saw its market value fell by a third. He has lost almost 7% on Monday as investors worried about its future without its founder, as customers ‘ AD to cut their budgets and rethink their strategy costs.
Quick guide Chart: career Martin Sorrell on
It may not seem like it, but sir Martin Sorrell was a career station. His love affair with advertising started as the first financial Director of Saatchi & Saatchi
Sorrell made his first step to world domination at the age of 40 years, investing in small Kent-manufacturer of wire baskets called wire and plastic products
Sorrell announces himself on the world stage, buying J. Walter Thompson, the world’s oldest advertising Agency and a cult brand for us $566m. In 1988, he is quoted on the Nasdaq in new York
The closest call VES with death came after a daring debt-fuelled move to buy Ogilvy & Mather on 864m $
Sorrell paid too much for the o&M and how the recession WPP nearly went out of business, warning of a profit in 1990 sent its shares tumbling from 650p in 1989, 115p. The company adopted a life-saving financial restructuring, but the hair damaged Sorrell reputation of the transaction
Sorrell buys ed Meyer, grey global £ 845m
Sorrell launches a lawsuit for libel against two former colleagues for allegedly labeling him a woman-head of the “mad dwarf and nympho schizo” circulating “vicious” image by e-mail about them. Sorrell accepts a settlement of £120,000 damages
It moves tax residency wind farm in Ireland in protest at the prospect of “double taxation” incomes abroad – once abroad and again in Britain. He moved back to the UK five years after the government passed legislation relating to the taxation of foreign income
The growing unrest in headlong hall to pay escalated into a series of revolts of the investor, with Sorrell one of the biggest scalps. It was the year the biggest from the wind farm revolt of the investor with 60% rejecting his salary
£Sorrell’s pay 70.4 m is one of the biggest pay deals in the corporate history of UK. By the end of 2016 he has made more than £200 million over a five year period
VES is experiencing its worst annual rate since the advertising recession of 2009, sending its stock price tumbling by more than a third
Sorrell iron grip of running wind farm is under threat after the Board hires law firm to investigate allegations of personal misconduct. It fell on April 14
Photograph: Eric Gaillard/X00102
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“The resignation of sir Martin Sorrell comes at a time when the company has faced a number of operational issues and introduces uncertainty in the strategy and ultimately the group structure in the future,” said conjuration.
Moody’s said that the wind farm was already poorly positioned prior to departure Sorrell, who perform significantly below their competitors, such as US group Omincom and IPG and French firm publicis.
A meeting of the Council WEC, the first not to include its founder and chief Executive, in years, expected to include mark read and Andrew Scott, the leaders got promoted to run day-to-day company during the CEO search. They are also the two leading internal candidates.
Member of the Board of Sol Trujillo, the former head of the companies, including the French telecommunications firm Orange and telstra in Australia, was one of the most vocal about the problem of continuity in wpp.
A number of names have emerged as potential runners and riders to succeed Sorrell, including the head of publishing and exhibitions group informa Stephen Carter, who worked at ofcom, the regulatory, cable firm NTL and WPP ad Agency jwt; Adam crozier, whose pedigree includes the launch of ITV, the Royal Mail, the football Association and Saatchi & Saatchi, sky Executive Director Jeremy darroch hotel, and Andrew Robertson, Executive Director of the holding company omnicom and BBDO global advertising network.
Sorrell said he was available to help with the transition.
Exit Martin Sorrell leaves too many questions unanswered
73-year-old “unconditionally” denied the misconduct, and the Board of wpp has said it will not publish the results of the investigation, an independent law firm.
An influential shareholder Advisory firm glass Lewis said that he would prefer WEC to publish the report, but that he has accepted this is unlikely to happen.
“In the interests of transparency, we would prefer if the report were available for shareholders, though we believe such an outcome is unlikely,” said Martin Mortell, Director of glass Lewis in the UK and Europe research. “Some investors may be willing to abandon transparency instead of reaching overdue change at the top and the possibility of a new strategic vision.”
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Sir Vince cable, liberal Democrat leader, about the fact that there is a “real lack of transparency” and “any investigation done by the company should be made public”.
The company said it has completed the investigation and has no further comment to make.
The share price of the Company moved on Tuesday by nearly 2% in trading, as market sentiment about the prospects of the advertising giant has stabilized.