WPP faces possible breakup
The world’s largest advertising group WPP could be broken up following the departure of founder and chief executive Martin Sorrell on 14 April.
According to reports in The Guardian, Sorrell’s decision to leave the company before the findings of an investigation into the improper use of company funds and improper personal behaviour have been delivered, could be viewed as a potential catalyst for the break up of the advertising giant.
Sorrell is reportedly in line for a £20m payout over the next five years as the result of a deal that will see him cash 1.6m shares in the company through a number of award plans. WPP confirmed that it was treating Sorrell’s resignation as his retirement from the company.
The payouts received by Sorrell have stoked controversy over recent years. During the past five years alone he has earnt more than £200m from pay and reward schemes, including a payout of £70m in 2015, one of the largest in UK history. This is despite the fact that Sorrell and his family own just a 1.8% stake in WPP.
The findings of the misconduct investigation will be delivered to the WPP board next Friday by law firm WilmerHale, but are not to be made public. Sorrell rejects any claims of misconduct “unreservedly”.
Facebook ad spend rises 43% despite Cambridge Analytica scandal
Advertising spend on Facebook rose by 43% year-on-year over the weeks following the revelation that data was harvested from 87 million users by UK political consultants Cambridge Analytica in the run up to the US elections.
The figures collated by media analyst 4C reveal that advertiser spending rose 7% in the week the scandal broke on 18 March and 15% the week after, compared to a drop of 6% during the same period in 2017.
The data released by The Daily Telegraph estimates that advertisers spent 62% more on Facebook during the first quarter of 2018 than in 2017. This is despite the fact that internet company Mozilla, which runs the Firefox browser, ceased advertising on the platform over its handling of the data breach and Unilever…