Martin Sorrell has stepped down as Chief Executive Officer of WPP with immediate effect as the previously announced investigation into an allegation of misconduct against him concludes. However, WPP, in a press statement, maintained that the allegation did not involve amounts that were material.
Roberto Quarta, Chairman of WPP, has become Executive Chairman until the appointment of a new Chief Executive Officer.
Mark Read, Chief Executive Officer of Wunderman and WPP Digital, and Andrew Scott, WPP Corporate Development Director and Chief Operating Officer, Europe, have been appointed as joint Chief Operating Officers of WPP.
Â â€śSorrell will be available to assist with the transition,â€ť added the statement.
In accordance with his at-will employment agreement, Sorrell will be treated as having retired on leaving WPP, as detailed in the Directorsâ€™ Compensation Policy. His share awards will be pro-rated in line with the plan rules and will vest over the next five years, to the extent Group performance targets are achieved.
Quarta said, â€śSir Martin has been the driving force behind the expansion of WPP to create the global leader in marketing services. During this time, the Company has been successful because it has valued and nurtured outstanding talent at every level â€“ within and well beyond our leadership teams. On behalf of the Board I would like to recognise these achievements and thank Sir Martin for his commitment to the business over more than three decades.â€ť
Sorrell said, â€śObviously I am sad to leave WPP after 33 years. It has been a passion, focus and source of energy for so long. However, I believe it is in the best interests of the business if I step down now. I leave the Company in very good hands, as the Board knows. Mark and Andrew and the management team at all levels have the knowledge and abilities to take WPP to even greater heights and capitalise on the geographic and functional opportunities. I will particularly miss the daily interactions with everyone across the world and want to thank them and their families for all they have done, and will do, for WPP.â€ť