There seems to be trouble brewing at WPP, world’s largest advertising company its chief executive, Sir Martin Sorrell is being investigated.
According to Daily Mail, the company’s board of directors led by its chairman, Roberto Quarta and senior non-executive director Nicole Seligman has appointed American Law firm, WilmerHale to conduct investigations into allegations of misconduct and misuse of assets.
Sir Martin Sorrell has dismissed the allegations as false.
Should the investigation further go ahead, it will mark a watershed in the relationship between Sir Martin Sorrell and his board.
All along, Martin Sorrell’s big pay package has always been a bone of contention between him and the company’s shareholders.
The latest investigation will further fuel the opposition figures against him despite recent victory MediaCom, one of WPP’s media buying subsidiary that just signed a £425 million media contract with Sky.
Several of Martin Sorrell’s friends have come to his defense on the premise that he had been diligent in separating his personal life from the business as well as finances. At 72, there is no succession plan for WPP as to who leads the advertising behemoth.
There are also oppositions to the company’s business model and structure. Many critics of Sorrell’s leadership wants some carve-outs to be done, particularly the data management arm of the group now valued at £3.5billion.
There is no guarantee that Sorrell would survive this latest onslaught against his person and leadership at WPP. There is also no guarantee who leads the company and what might happen to the company as far as its number one position is concerned.