WPP CEO Martin Sorrell Steps Down After 33 Years
Sir Martin Sorrell has stepped down from his role as CEO of WPP. The world’s largest advertising company confirmed in a statement that Sorrell has resigned as CEO, effectively immediately, following 33 years in the role. Bloomberg first broke the news earlier this evening.
A statement from WPP to confirm the development read “Sir Martin Sorrell has stepped down as Chief Executive Officer of WPP with immediate effect. Roberto Quarta, Chairman of WPP, becomes Executive Chairman until the appointment of a new Chief Executive Officer.”
Wunderman CEO Mark Read and Andrew Scott, who is WPP’s corporate development director and chief operating officer for Europe, will share the chief operating officer role. But there are speculations in the media that either of them could step into the vacant CEO or the two could become co-CEOs.
In his own statement Martin Sorrell said he was sad by the development. “Obviously I am sad to leave WPP after 33 years. It has been a passion, focus and source of energy for so long. However, I believe it is in the best interests of the business if I step down now,” Sorrell said in a statement.
In his emotion-laden statement, the iconic adman told staff that for him WPP and its future is “more important than a matter of life or death”.
“As I look ahead, I see that the current disruption we are experiencing is simply putting too much unnecessary pressure on the business,” said Sorrell.
“That is why I have decided that in your interest, in the interest of our clients, in the interest of all share owners, both big and small, and in the interest of all our other stakeholders, it is best for me to step aside.
“As a founder, I can say that WPP is not just a matter of life or death, it was, is and will be more important than that. Good fortune and Godspeed to all of you … now Back to the Future.”
Sorrell has been under increasing pressure since the allegation of personal misconduct was made public by WPP’s board earlier this month. The board had appointed an independent legal counsel to investigate the allegation and the findings of the investigation is expected next week.
WWP, was formed when Sorrell took control of a shell company called Wire & Plastic Products, which had originally made wire shopping carts. He turned it into WWP, a marketing services firm, in 1986. Today it has more than 3,000 offices in 112 countries.
Sorrell was one of the highest paid executives in the United Kingdom, earning almost $100 million in 2016.
WPP had lost significant value in recent years, in part due to massive changes in advertising and the advertising industry. The company’s value has dropped by more than a quarter over the past year.
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