Continuing uncertainty at WPP
Tuesday, May 22nd, 2018
Following the departure of Sir Martin Sorrell last month, uncertainty over the future direction of the group continued, as investment advisory group Glass Lewis recommended shareholders to vote against re-election of chairman Robert Quarta, citing concerns over failure to prepare a for Sorrell’s replacement and the “opaque nature” of the investigation into his conduct.
The company’s largest investor, Harris Associates, however, has backed the decision not to release the report of the internal investigation.
According to The Guardian, WPP is already considering the future of Kantar, which “continues to underperform”, and has received an approach from private capital group CVC. The market research division, which accounts for 15% of WPP’s profits and 18% of revenues, is valued at about £3.5bn.