The WPP chairman, Roberto Quarta, fielded questions at the company’s annual meeting from shareholders about pay, the handling of Sir Martin Sorrell’s resignation and his own position. Here’s what he told investors.
On Sorrell’s future bonuses
“The contract required Martin to be treated as having retired unless a definition of gross misconduct could be satisfied – which it could not, and on which the board had clear legal advice.”
On disclosure of more details about Sorrell’s exit
“Although we have confirmed that the matter was financially wholly immaterial to WPP, we understand why some would like the company to disclose or confirm further details of the allegation. However [...] the board has acted in accordance with unequivocal legal advice that data protection law prohibits us from doing so.”
On allegations of bullying
“The board takes this matter very seriously and has asked the new management to review how our policies are put into practice and where and how we need to make improvements.”
On criticism at the lack of succession planning
“While we did not foresee the sudden nature of the CEO’s departure, we were ready for it.”
On Sorrell’s new venture competing with WPP
“Sir Martin said he had no intention of competing and he has described his new vehicle is a peanut that would not compete against a global company like WPP.”
On retention of clients after Sorrell’s exit
“The relationships with clients are not held by the chairman or the CEO but at the lovel of our operating companies and global client teams [...] Those relationships are as strong as ever.”
