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| WPP boss tells staff to 'expect respect' as group launches review | WPP boss tells staff to 'expect respect' as group launches review |
| (7 months later) | |
| WPP directors are braced for a chastening showdown with investors over their handling of the resignation of Sir Martin Sorrell, whose departure from the empire he ruled for 33 years has triggered lurid allegations of personal misconduct. | WPP directors are braced for a chastening showdown with investors over their handling of the resignation of Sir Martin Sorrell, whose departure from the empire he ruled for 33 years has triggered lurid allegations of personal misconduct. |
| The world’s largest advertising company will face protest votes at Wednesday’s annual meeting, the first since Sorrell’s resignation in April. | The world’s largest advertising company will face protest votes at Wednesday’s annual meeting, the first since Sorrell’s resignation in April. |
| A group of shareholders will vote against WPP’s pay policy, which is set to hand Sorrell future share awards worth up to £20m, despite a lack of information about the reasons for his departure. | A group of shareholders will vote against WPP’s pay policy, which is set to hand Sorrell future share awards worth up to £20m, despite a lack of information about the reasons for his departure. |
| Several investors will also oppose the re-election of chairman Roberto Quarta, amid concern about his management of the crisis and his capacity to assume a more hands-on role while the firm seeks a new chief executive. | Several investors will also oppose the re-election of chairman Roberto Quarta, amid concern about his management of the crisis and his capacity to assume a more hands-on role while the firm seeks a new chief executive. |
| WPP has been embarrassed by a string of allegations – strenuously denied by Sorrell – that have leaked into the public domain about the advertising and marketing guru’s behaviour. | WPP has been embarrassed by a string of allegations – strenuously denied by Sorrell – that have leaked into the public domain about the advertising and marketing guru’s behaviour. |
| Claims have emerged that WPP staff said they witnessed the 73-year-old entering a premises used by sex workers, leading to concerns that the alleged visit was paid for with company money. | Claims have emerged that WPP staff said they witnessed the 73-year-old entering a premises used by sex workers, leading to concerns that the alleged visit was paid for with company money. |
| The report, in the Financial Times, was accompanied by further allegations from inside WPP about his use of company resources and that he created a “fear culture” by bullying staff. | The report, in the Financial Times, was accompanied by further allegations from inside WPP about his use of company resources and that he created a “fear culture” by bullying staff. |
| Roberto Quarta | Roberto Quarta |
| Role: executive chairmanTime with company: three yearsPay in 2017: £475,000 | Role: executive chairmanTime with company: three yearsPay in 2017: £475,000 |
| The Italian-American businessman, who is 69, has taken on Sir Martin Sorrell’s executive responsibilities while the company looks for a successor. The shareholder advisory group Glass Lewis has expressed concern about his ability to juggle his new duties as he is also chairman of another FTSE 100 company, the medical equipment firm Smith & Nephew. | The Italian-American businessman, who is 69, has taken on Sir Martin Sorrell’s executive responsibilities while the company looks for a successor. The shareholder advisory group Glass Lewis has expressed concern about his ability to juggle his new duties as he is also chairman of another FTSE 100 company, the medical equipment firm Smith & Nephew. |
| Paul Richardson | Paul Richardson |
| Role: finance directorTime with company: 26 yearsPay in 2017: £3.8m | Role: finance directorTime with company: 26 yearsPay in 2017: £3.8m |
| The finance chief of WPP has worked hand in glove with Sorrell for 22 of the 33 years that WPP has existed, having been appointed to the position in 1996. | The finance chief of WPP has worked hand in glove with Sorrell for 22 of the 33 years that WPP has existed, having been appointed to the position in 1996. |
| Sir John Hood | Sir John Hood |
| Role: pay committee chair, non-executiveTime with company: four yearsPay in 2017: £110,000 | Role: pay committee chair, non-executiveTime with company: four yearsPay in 2017: £110,000 |
| The New Zealand businessman oversees the company’s pay arrangements, which have come under scrutiny due to the multimillion-pound share awards that Sorrell has typically been awarded. The 66-year-old former vice-chancellor of Oxford University will handle discussions with shareholders about the financial package handed to Sorrell on his exit. Some investors are angry that he is being treated as a “good leaver”, entitling him to at least £14m in payments, despite a lack of transparency about the allegations levelled against him. | The New Zealand businessman oversees the company’s pay arrangements, which have come under scrutiny due to the multimillion-pound share awards that Sorrell has typically been awarded. The 66-year-old former vice-chancellor of Oxford University will handle discussions with shareholders about the financial package handed to Sorrell on his exit. Some investors are angry that he is being treated as a “good leaver”, entitling him to at least £14m in payments, despite a lack of transparency about the allegations levelled against him. |
| Nicole Seligman | Nicole Seligman |
| Role: senior independent director, non-executiveTime with company: four yearsPay in 2017: £91,000 | Role: senior independent director, non-executiveTime with company: four yearsPay in 2017: £91,000 |
| The former president of Sony Entertainment is a highly respected legal mind who has provided legal counsel for a string of major companies and is a former clerk for a US supreme court justice. The 61-year-old, who also defended Bill Clinton during the Monica Lewinsky scandal, is also a former associate editorial page editor for the Asian edition of the Wall Street Journal, the newspaper that first revealed details of WPP’s investigation into Sorrell. | The former president of Sony Entertainment is a highly respected legal mind who has provided legal counsel for a string of major companies and is a former clerk for a US supreme court justice. The 61-year-old, who also defended Bill Clinton during the Monica Lewinsky scandal, is also a former associate editorial page editor for the Asian edition of the Wall Street Journal, the newspaper that first revealed details of WPP’s investigation into Sorrell. |
| Jacques Aigrain | Jacques Aigrain |
| Role: audit committee chair, non-executiveTime with company: five yearsPay in 2017: £130,000 | Role: audit committee chair, non-executiveTime with company: five yearsPay in 2017: £130,000 |
| The dual French-Swiss citizen has enjoyed a long and prestigious career in the financial services industry, 20 years of it with the Wall Street bank JPMorgan Chase. | The dual French-Swiss citizen has enjoyed a long and prestigious career in the financial services industry, 20 years of it with the Wall Street bank JPMorgan Chase. |
| Tarek Farahat | Tarek Farahat |
| Role: non-executiveTime with company: two yearsPay in 2017: £87,000 | Role: non-executiveTime with company: two yearsPay in 2017: £87,000 |
| Farahat, a 54-year-old Egyptian-Brazilian, spent 26 years with the household goods firm Procter & Gamble, in marketing and executive management roles, eventually becoming president. P&G is the world’s biggest advertiser and a major client of WPP. | Farahat, a 54-year-old Egyptian-Brazilian, spent 26 years with the household goods firm Procter & Gamble, in marketing and executive management roles, eventually becoming president. P&G is the world’s biggest advertiser and a major client of WPP. |
| Ruigang Li | Ruigang Li |
| Role: non-executiveTime with company: eight yearsPay in 2017: £80,000 | Role: non-executiveTime with company: eight yearsPay in 2017: £80,000 |
| One of the company’s key sources of insight into the Chinese market, he is the founding chairman of CMC Capital Partners and CMC Holdings, Chinese platforms for media and entertainment investment and operations. The 49-year-old has been described as China’s Rupert Murdoch thanks to his media empire-building. | One of the company’s key sources of insight into the Chinese market, he is the founding chairman of CMC Capital Partners and CMC Holdings, Chinese platforms for media and entertainment investment and operations. The 49-year-old has been described as China’s Rupert Murdoch thanks to his media empire-building. |
| Sol Trujillo | Sol Trujillo |
| Role: non-executiveTime with company: eight yearsPay in 2017: £90,000 | Role: non-executiveTime with company: eight yearsPay in 2017: £90,000 |
| Trujillo has been chief executive of multiple companies across the world, including Orange and Telstra, over three decades. Trujillo, 66, has particular experience in communications and technology and was an early champion of high-speed broadband. | Trujillo has been chief executive of multiple companies across the world, including Orange and Telstra, over three decades. Trujillo, 66, has particular experience in communications and technology and was an early champion of high-speed broadband. |
| Daniela Riccardi | Daniela Riccardi |
| Role: non-executiveTime with company: five yearsPay in 2017: £80,000 | Role: non-executiveTime with company: five yearsPay in 2017: £80,000 |
| Riccardi is WPP’s retail guru, offering insight into consumer goods. The Italian is the chief executive of the luxury crystal firm Baccarat and was previously the chief executive of the international fashion brand Diesel. | Riccardi is WPP’s retail guru, offering insight into consumer goods. The Italian is the chief executive of the luxury crystal firm Baccarat and was previously the chief executive of the international fashion brand Diesel. |
| Hugo Shong | Hugo Shong |
| Role: non-executiveTime with company: five yearsPay in 2017: £80,000 | Role: non-executiveTime with company: five yearsPay in 2017: £80,000 |
| A marketing and publishing expert with extensive experience of China and other Asian markets. The former journalist formed China’s first technology venture capital firm, IDG Capital Partners, which was to invest in a string of China’s most successful internet companies such as Baidu and Tencent. | A marketing and publishing expert with extensive experience of China and other Asian markets. The former journalist formed China’s first technology venture capital firm, IDG Capital Partners, which was to invest in a string of China’s most successful internet companies such as Baidu and Tencent. |
| Sally Susman | Sally Susman |
| Role: non-executiveTime with company: five yearsPay in 2017: £80,000 | Role: non-executiveTime with company: five yearsPay in 2017: £80,000 |
| Susman, 56, is the executive vice-president of corporate affairs at the world’s largest pharmaceuticals company, Pfizer. She also has far-reaching experience in corporate responsibility and governance. | Susman, 56, is the executive vice-president of corporate affairs at the world’s largest pharmaceuticals company, Pfizer. She also has far-reaching experience in corporate responsibility and governance. |
| He has vehemently denied the allegations but has refused to elaborate, citing a non-disclosure agreement signed with WPP when he left. | He has vehemently denied the allegations but has refused to elaborate, citing a non-disclosure agreement signed with WPP when he left. |
| Despite the secrecy, WPP’s pay policy allows Sorrell to pick up future share awards worth up to £20m because he is designated a “good leaver”. | Despite the secrecy, WPP’s pay policy allows Sorrell to pick up future share awards worth up to £20m because he is designated a “good leaver”. |
| Shareholder advisory groups including Glass Lewis, Pirc and Hermes EOS have recommended voting against the pay deal, saying opacity around his departure makes it hard for investors to assess whether he is entitled to it. | Shareholder advisory groups including Glass Lewis, Pirc and Hermes EOS have recommended voting against the pay deal, saying opacity around his departure makes it hard for investors to assess whether he is entitled to it. |
| City investment firm Royal London Asset Management said it would vote against the pay report but not due to Sorrell’s exit package. | City investment firm Royal London Asset Management said it would vote against the pay report but not due to Sorrell’s exit package. |
| Instead it cited “really high levels of incentive pay on offer during 2017”, when WPP handed Sorrell a pay deal worth £48m, a year after investors protested against an even more generous package worth £70m, one of the largest in UK corporate history. | Instead it cited “really high levels of incentive pay on offer during 2017”, when WPP handed Sorrell a pay deal worth £48m, a year after investors protested against an even more generous package worth £70m, one of the largest in UK corporate history. |
| RLAM will also vote against the reappointment of company pay chief Sir John Hood over “long-held concerns on pay” and will abstain on the reappointment of Quarta. | RLAM will also vote against the reappointment of company pay chief Sir John Hood over “long-held concerns on pay” and will abstain on the reappointment of Quarta. |
| The investment firm has doubts over Quarta’s ability to juggle the executive chairmanship of WPP with his chairman’s role at FTSE100 medical supplies firm Smith & Nephew. | The investment firm has doubts over Quarta’s ability to juggle the executive chairmanship of WPP with his chairman’s role at FTSE100 medical supplies firm Smith & Nephew. |
| The two giant US pension funds Calstrs and Calpers have published their votes, with the former set to vote against Quarta but not WPP’s pay report, while Calpers protests on pay but backs directors. | The two giant US pension funds Calstrs and Calpers have published their votes, with the former set to vote against Quarta but not WPP’s pay report, while Calpers protests on pay but backs directors. |
| As well as Quarta’s multiple jobs, the Italian-American businessman is expected to face criticism over a lack of succession planning and the fact that Sorrell was not bound by a non-compete clause preventing him from setting up a rival. | As well as Quarta’s multiple jobs, the Italian-American businessman is expected to face criticism over a lack of succession planning and the fact that Sorrell was not bound by a non-compete clause preventing him from setting up a rival. |
| The industry veteran, who took over a wire shopping basket maker in 1985 and turned into the world’s largest advertising empire comprising a network of 400 companies, has already set up a new venture called S4. | The industry veteran, who took over a wire shopping basket maker in 1985 and turned into the world’s largest advertising empire comprising a network of 400 companies, has already set up a new venture called S4. |
| He has put £40m of his own money into the company, topped up by a £11m from investors, and has said he wants to make acquisitions in “data, technology and content”. Financial backers have made commitments to plough in a further £150m to fund buyouts. | He has put £40m of his own money into the company, topped up by a £11m from investors, and has said he wants to make acquisitions in “data, technology and content”. Financial backers have made commitments to plough in a further £150m to fund buyouts. |
| They are understood to include financier Lord Rothschild, Toscafund founder Martin Hughes, Saracens rugby club owner Nigel Wray, investment firm Schroders, private bank Lombard Odier and asset manager Miton. | They are understood to include financier Lord Rothschild, Toscafund founder Martin Hughes, Saracens rugby club owner Nigel Wray, investment firm Schroders, private bank Lombard Odier and asset manager Miton. |
| Mark Read, WPP’s chief operating officer appeared to make a pitch to succeed Sorrell on Tuesday, sending an email to all staff promising a review of the company’s rules around conduct. | Mark Read, WPP’s chief operating officer appeared to make a pitch to succeed Sorrell on Tuesday, sending an email to all staff promising a review of the company’s rules around conduct. |
| Read, chief executive of WPP’s digital marketing agency Wunderman, reminded staff of the company’s “values” following bullying allegations against Sorrell. | Read, chief executive of WPP’s digital marketing agency Wunderman, reminded staff of the company’s “values” following bullying allegations against Sorrell. |
| “When I come to work I expect to be treated with respect by my colleagues, and every one of you reading this has the right to expect the same,” he said. | “When I come to work I expect to be treated with respect by my colleagues, and every one of you reading this has the right to expect the same,” he said. |
| “You will no doubt have read the press coverage this week about WPP and Martin Sorrell, including allegations about his behaviour towards people at the parent company. | “You will no doubt have read the press coverage this week about WPP and Martin Sorrell, including allegations about his behaviour towards people at the parent company. |
| “Although we can’t comment on specific allegations, I feel we should remind ourselves of and reinforce the kind of values we want and need to have within every part of our business: values of fairness, tolerance, kindness and – again – respect. | “Although we can’t comment on specific allegations, I feel we should remind ourselves of and reinforce the kind of values we want and need to have within every part of our business: values of fairness, tolerance, kindness and – again – respect. |
| “It should hardly need saying that all WPP working environments must be places where people feel safe and supported. They must also be places where people are able to raise concerns if they want to, and where those concerns are dealt with when they need to be.” | “It should hardly need saying that all WPP working environments must be places where people feel safe and supported. They must also be places where people are able to raise concerns if they want to, and where those concerns are dealt with when they need to be.” |
| WPP could also face a class action lawsuit after US specialist law firm Pomerantz said it was investigating concerns raised by investors about potential securities fraud and “unlawful business practices”. | WPP could also face a class action lawsuit after US specialist law firm Pomerantz said it was investigating concerns raised by investors about potential securities fraud and “unlawful business practices”. |
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