AD Agencies
WPP learns to live without Martin Sorrell
MUMBAI: British multinational advertising and public relations company WPP has decided to review its policies and codes of conduct and how these can be improved upon. The agency’s chief operating officer Mark Read in a staff memo said that the review will be conducted by leadership teams throughout the group.
He did not respond to allegations in reports in the Financial Times and the Wall Street Journal which stated that its former CEO Martin Sorrell resigned in the midst of investigations of having paid company money (some 300 pounds) for services to a sex worker in a Mayfair brothel. Additionally, there were allegations in the reports that Sir Martin had a bullying nature towards junior employees and was curt with them.
Instead Read stated in the memo that “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 respect.”
He added: “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.”
The memo also mentioned about WPP’s helpline, Right to Speak. Read mentioned that the service was available for everyone across the group that allows them to raise issues without fear of reprisal. The Right to Speak service is independently operated and protects the identity of anyone who would rather not speak directly to their respective line manager or senior official about their concerns.
The company also had its annual general meeting with its shareholders on Wednesday, during the course of which a section of shareholders protested against the appointment of WPP chairman Roberto Quarta, the handling of the Sorrell exit and the payouts being planned for him in the form of share awards, as well as the fact that he was not asked to sign a non-compete agreement when he departed from the agency last month, amidst controversy.
WPP chairman Roberto Quarta said that there was no basis to cancel Sorrell’s share awards as the company did not have any proof of misconduct. “The contract required Martin to be treated as having retired unless a definition of gross misconduct would be satisfied, which it could not, and on which the board had clear legal advice.”
As far as the non-compete clause and the payout were concerned, Quarta stated that the conditions of Sir Martin’s employment contract predated the current board. This despite, it managed to get him to take cuts in pay and benefits at a time when the agency had put up a stellar performance in 2015.
Quarta has also started an investigation within the organisation on how information about allegations against Sorrell leaked into the media.
Read who is tipped to take over CEO was quoted by the BBC as saying that “Martin was a hard-working and hard-driving chief executive. I don’t recognise the bullying nature of some of the allegations.”
Sorrell has denied the allegations which have appeared in the media but decline to say anything more.
Read meanwhile said he has spent time with group agencies and clients over the last eight weeks, reassuring them of WPP’s health today and going forward. Disclosed he in the note: “There is tremendous positivity and confidence about the future of the business. Let’s stay focused on that, and continuing to build a company we are all proud of. We all want WPP and its agencies to continue to be home to the world’s best talent, which means creating a positive, supportive and inclusive culture in every office. More importantly, it’s the right thing to do.”
AD Agencies
Omnicom to divest $2.5 billion businesses in 12 months: CEO John Wren
Group doubles synergy target to $1.5bn as jobs, brands and markets go
NEW YORK: Omnicom Group is preparing to divest or exit businesses generating about $2.5 billion in annual revenue, stepping up a sweeping portfolio overhaul after its $13.25 billion acquisition of Interpublic Group.
Speaking on the group’s fourth-quarter earnings call, chairman and chief executive officer John Wren said Omnicom had already sold or exited units worth more than $800 million in annual revenue and expects to complete the remaining disposals within 12 months.
The company is also scaling back in smaller markets, shifting from majority to minority ownership in businesses accounting for roughly $700 million in revenue. These markets, Wren said, are no longer central to Omnicom’s long-term strategy.
Following the IPG merger, Omnicom has doubled its targeted annual run-rate synergies to $1.5 billion over the next 30 months, from an earlier estimate of $750 million. Management expects to capture $900 million of those savings in 2026 alone, with around $1 billion coming from labour cost reductions as overlapping corporate, network and operational roles are eliminated.
Further efficiencies will flow from simplified regional and brand structures, consolidated resources, and faster outsourcing and offshoring under a unified operating model. In December 2025, the group said it would cut more than 4,000 jobs and fold several agency brands into larger networks.
Wren also underlined stepped-up investment in automation and artificial intelligence to lift margins and sharpen client servicing amid intensifying competition.
The board has authorised a $5 billion share buyback, including a $2.5 billion accelerated repurchase programme, while committing continued investment in media, commerce, consulting and data capabilities.
Omnicom reported a 27.9 per cent rise in fourth-quarter fiscal 2026 revenue to $5.53 billion, reflecting organic growth and one month’s contribution from IPG, compared with $4.32 billion a year earlier. Wren said the IPG combination strengthened the client roster, citing new or expanded mandates from American Express, Bayer, BBVA, BNY, Mercedes-Benz and NatWest Group.
