It goes from bad to worse at WPP but nobody expected an external investigation into the conduct of CEO and company founder Sir Martin Sorrell (below).
His $127 payout in 2015 was one of the biggest in United Kingdom corporate history and several clients expressed shock at the amount of money WPP executives were taking out of the Company. However, the Wall Street Journal citing sources said that the holding company was looking into possible misuse of company assets by Sorrell.
Sorrell has been at the helm of WPP since 1986, following a private investment in wire shipping basket company Wire & Plastic Products the year prior.More news: Dec presents tonight's Saturday Night Takeaway solo
During the past five years Sorrell whose PR businesses in Australia are struggling to grow has been paid over $350M dollars during the past five years. This allegation is being investigated by a law firm.
The world's largest advertising agency is investigating an allegation of personal misconduct against its chief executive. With the advertising space becoming increasingly dominated by the likes of Google and Facebook, many companies are choosing to avoid agency fees by moving their marketing in-house.
"I understand that this process will be completed shortly", he said.
We wait to see how WPP's shares react to the overnight news. "As a significant share owner, my commitment to the company, which I founded over 30 years ago, remains absolute".
Nevertheless, WPP shares have slumped to their lowest level in more than four years as growth has stalled and some fund managers have called for more radical action from the board. "Obviously, I shall play no part in the management of the investigation under way".