Advertising giant WPP investigates its own CEO Sorrell

- The search for abuses at the top man of WPP, the largest advertising company in the world, has put the share of Wednesday significantly lower on the British stock market.

Sir Martin Sorrell, who founded the company, awaits an internal investigation of his commissioners due to administrative misconduct, confirmed the concern after reports from the WSJ. WPP is widely represented in the global advertising world and accounts for $ 13.6 billion market value.

In 2016, it generated almost $ 18 billion in revenue from advertisements for, among others, Unilever. On Wednesday, the share fell by almost 4% on a flat stock exchange.

The FTSE 100 company has engaged external lawyers to investigate whether Sorrell has acted according to the rules with a few company funds. Sorrell immediately rejected the accusations as incorrect. He stated that the matter would be resolved quickly.

The possible damage of the investigation and possible abuse of funds would not materially affect the group turnover, according to WPP in a reaction. Sorrell has been under fire from shareholders for some time because of the top remuneration he has received for years, even if the group performs less.

The 73-year-old Sorrell also acknowledged that 2017 was 'not pretty' for the group due to declining sales. Especially social media like Facebook and Google are shooting under his pigeons.

Sorrell has for a long time sketched how technological innovation is drastically changing the entire sector. More than five years ago, he began an operation to allow WPP to respond more quickly to market trends and cut sharply in costs of the company with 134,000 employees in 100 countries. Recently, the British top man sought more rapprochement with Google and Facebook.

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