The 73 year-old founder of the advertising behemoth decided to step down immediately after the so-called investigations, regarding personal misconduct and misuse of company assets, concluded.
The 73 year-old founder of the advertising behemoth decided to step down immediately after the so-called investigations, regarding personal misconduct and misuse of company assets, concluded. He had denied the allegations and said that the disruption was putting too much strain on the company even as the Board is set to release its findings soon.
In a letter to WPP employees, he wrote: “In your interest, in the interest of our clients, in the interest of all shareowners, both big and small, and in the interest of all our other stakeholders, it is best for me to step aside”. While a clear succession plan is awaited from WPP, Roberto Quarta will be serving as executive chairman until the appointment of a new CEO. Mark Read, head of WPP agency Wunderman, and Andrew Scott, WPP’s corporate development director, have been given the responsibility of joint chief operating officers.
The UK-based company is also facing a tough financial situation with its shares losing a third of its value over the last year. On March, 1 it also lowered its long-term profit outlook. Sorrell’s sudden departure has obviously sparked questions on the holding group’s current form; it employs over two lakh people in more than 400 companies across 112 countries.
Starbucks Philadelphia lands in a racist soup
The incident regarding the arrest of two black men from Starbucks’ Philadelphia store, who were later released, has resulted in loud criticism from the public. The store manager called the police because the two men were sitting in the store without placing an order and were arrested for trespassing.
Post the wide furore over the racist incident, the company’s CEO Kevin Johnson called the arrests “reprehensible” and promised to take action. He further assured that its staff would get more training on “unconscious bias”. He also posted an apology on the coffee chain’s website, saying that the company wanted to “express our deepest apologies to the two men who were arrested with a goal of doing whatever we can to make things right”. Starbucks will close more than 8,000 stores in the US on May, 29 to conduct anti-bias training for its employees.
According to media reports, problems began when the men asked for a code to use the bathroom and were told it was only available for paying customers. After the video of the arrest spread online, #BoycottStarbucks started trending on Twitter, even as demonstrators started protesting in front of the store.
Volkswagen to review creative duties, globally
Post the diesel emissions scandal, Volkswagen Group is launching a global creative agency review in an effort to centralise marketing control and improve its brand image.
Its chief marketing officer Jochen Sengpiehl highlighted that the company wants to consolidate the account into big regional hubs covering Europe, China, the US and the rest of the world. The German automaker is also looking to broaden its appeal and thus, might also introduce a new logo next year as it prepares for an era of electric cars.