Following months of speculation, WPP has today confirmed the appointment of Mark Read as chief executive officer in a unanimous board decision.
WPP’s former CEO, Sir Martin Sorrell, abruptly resigned in April amidst allegations of misconduct, since which Read has been leading the company as co-chief operating officer with Andrew Scott.
Read has worked at the advertising house for close to 30 years, including more than three years as CEO of the WPP-owned agency, Wunderman.
Commenting on the appointment, Roberto Quarta, WPP’s chairman, said Read is in “every way a 21st-century CEO.”
“Recognised for his leadership throughout the industry, he has an intimate understanding of the business, he enjoys very strong internal support, and he has earned the respect and endorsement of our clients with his constant focus on their needs,” Quarta said.
“He has played a central role in many of WPP’s most successful investments and initiatives, and he has deep experience at board and operational level. Most recently, Mark led the transformation of Wunderman into one of the world’s top digital agencies, and he understands the importance of culture in creating successful organisations.”
Read’s annual salary is to be £975,000, with an annual bonus of up to 2.5 times that amount. His contract also includes a long-term incentive scheme award of up to 3.5 times his basic salary, a cash allowance of 20% his salary in lieu of pension, and a benefits allowance of £35,000 per annum.
Furthermore, Read’s contract contains restrictive covenants including an industry non-compete, a non-deal with clients and a non-poach, non-employ of key WPP individuals.
According to Read, WPP can look ahead to “an exciting and successful future” if it can embrace the period of structural change the advertising industry is currently undergoing.
“Our mission now is to release the full potential that exists within the company for the benefit of our clients, to accelerate our transformation and simplify our offering, and to position WPP for stronger growth,” said Read.
“To achieve that we need to foster a culture that attracts the best and brightest: inclusive, respectful, collaborative, diverse. What makes our company special is its people, and I am very proud to have been given the chance to build a new WPP with them.”
Following the appointment, Roberto Quarta has resumed his role as non-executive chairman; Andrew Scott will continue in his role as chief operating officer on a permanent basis.
