WPP CEO Sir Martin Sorrell resignation

The successor of Martin Sorrell will have to decide the fate of WPP’s 405 agencies and 200,000 employees

405

WPP owns 405 advertising, public relations, marketing, and media buying agencies, including global ad giants like Y&R, Grey Group, and Ogilvy & Mather, and employs over 200,000 people around the world.

Published   |  Photo by EPA-EFE/Facundo Arrizabalaga
WPP CEO Sir Martin Sorrell resignation
405

The successor of CEO Martin Sorrell, who resigned over the weekend after allegations of misuse of company funds and improper behavior, will have to decide whether the group should shrink or split.

WPP CEO Sir Martin Sorrell resignation
405

Though WPP is the largest advertising firm in the world, its stock price has been falling more compared to other ad groups, as the industry suffers from a shift to digital platforms.

WPP CEO Sir Martin Sorrell resignation
405

One-year stock performance of major ad companies

WPP CEO Sir Martin Sorrell resignation
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Analysts and investors have been pushing WPP to sell units (particularly its market-research arm, which could be worth billions of pounds), and use the money to pay down debt and return cash to shareholders.

WPP CEO Sir Martin Sorrell resignation
405

On Monday morning, WPP’s stock dropped over 5%, eliminating some £750 million ($1.1 billion) in market value. But even before Sorrell’s ouster, the share price of the advertising company had slipped by more than 30%.

WPP CEO Sir Martin Sorrell resignation
405

WPP’s market value

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