What Is WPP Founder Martin Sorrell Accused Of? World’s Biggest Advertising Company Launches Misconduct Inquiry
WPP, a multinational advertising and PR company, is investigating a personal misconduct allegation against its CEO and founder, Sir Martin Sorrell.
Sorrell, 73, denies the allegation "unreservedly,” which is believed to be related to improper use of company funds.
“The board of WPP has appointed independent counsel to conduct an investigation in response to an allegation of personal misconduct against Sir Martin Sorrell, chief executive officer of WPP,” a company spokesperson said in a statement on Tuesday. "The allegations do not involve amounts which are material to WPP."
On Wednesday, Sorrell confirmed the WPP investigation was into an allegation of “financial impropriety.”
"This allegation is being investigated by a law firm. I reject the allegation unreservedly but recognise that the company has to investigate it. I understand that this process will be completed shortly," he said in a statement, Wall Street Journal reported.
Sorrell added: “As a significant share owner, my commitment to the company, which I founded over thirty years ago, remains absolute—to our people, our clients, our shareholders and all of our many stakeholders.”
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In 1985, Sorrell invested in a manufacturing company called Wire & Plastic Products plc. He renamed it WPP Group and turned it into the world’s largest advertising agency three decades later. The company, which has its main management office in London, England, now has 134,000 staff in 3,000 offices across 112 countries.
Sorrell is known as one of the UK’s highest paid executives. In 2015, he pulled in a $98 million salary, the highest amount paid to an FTSE 100 executive that year. He was knighted in 2000.
Company share prices have dropped since the investigation was revealed. On Wednesday morning, shares in WPP opened 2.8 percent lower in London.
Last month, WPP said 2017 was “not a pretty year,” due to flat like-for-like, top-line growth, despite the company earning profits of over $2.8 billion.
WPP did not respond to Newsweek’s request for comment at the time this article was published.