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Source: http://www.thedrum.com
Áfter the departure of WPP's Sir Martin Sorrell, the company's shareholders will protest. It is not clear yet whether the advisory group ISS will back shareholders protest.
The main reason behind Sorrell's quit is not clear yet as it was kept a secret due to the data privacy laws.; but there have been allegations of financial and personal misconduct.
WPP shareholders have been pressuring the advertising group’s chairman Roberto Quarta to let him reveal the investigations results and the full reasons behind Sorrell’s departure.
Shareholder advisory groups Glass Lewis and Pirc have already advised voting against the re-election of Quarta over his refusal to disclose.
“There is no disclosure regarding the reason for the sudden departure of the group chief executive. Shareholders should be informed of significant company events such as this,” Pirc said.
Meanwhile, Glass Lewis, advised that Quarta’s failure to “adequately prepare” for the replacement of Sorrell had been heightened by the “opaque nature” of the investigation into his conduct.
ISS, believed to be the more influential of the advisory agencies, is expected to reveal in the coming days whether it would also back a potential shareholder revolt at the group’s annual meeting on 13 June.
The Times has reported that Quarta has been trying to keep leading shareholders on side ahead of the AGM.
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