Sir Martin Sorrell has resigned as chief executive officer of WPP with immediate effect.
On Saturday (14 April), Sorrell, who has been CEO of the world’s largest advertising group for the last 33 years, said it is in the “best interests of the business” that he steps down now.
“Obviously I am sad to leave WPP after 33 years. It has been a passion, focus and source of energy for so long,” he said.
“However, I believe it is in the best interests of the business if I step down now. I leave the Company in very good hands, as the Board knows.I will particularly miss the daily interactions with everyone across the world and want to thank them and their families for all they have done, and will do, for WPP.”
The announcement comes following an investigation into an allegation of “personal misconduct” against Sorrell, which has now concluded. It did not involve amounts that are material to WPP.
Roberto Quarta, chairman of WPP, will take on the role as executive chairman until the appointment of a new chief executive officer.
Meanwhile, Mark Read, chief executive officer of Wunderman and WPP Digital, and Andrew Scott, WPP corporate development director and chief operating officer, Europe, have been appointed as joint chief operating officers of WPP.
“Sir Martin has been the driving force behind the expansion of WPP to create the global leader in marketing services,” Quarta said.
“During this time, the Company has been successful because it has valued and nurtured outstanding talent at every level – within and well beyond our leadership teams. On behalf of the Board I would like to recognise these achievements and thank Sir Martin for his commitment to the business over more than three decades.”
Sorrell is one of the best paid executives in the UK, earning £70m in 2015-16. However, last month WPP announced its worst set of annual results since the 2009 recession, with revenues falling by 0.3% and net sales dropping 0.9%.
Analysis to follow.
