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WPP orders independent inquiry into Sorrell's conduct
WPP said it had commissioned an independent investigation into an allegation of personal misconduct against chief executive Martin Sorrell.
The company said: "The board of WPP has appointed independent counsel to conduct an investigation in response to an allegation of personal misconduct against Sir Martin Sorrell, chief executive officer of WPP. The investigation is ongoing. The allegations do not involve amounts which are material to WPP."
WPP's brief statement follows a Wall Street Journal report that the board is examining whether Sorrell misused company assets. The investigation also covers "allegations of improper personal behaviour" by Sorrell, the Journal reported.
Sorrell has run WPP since 1986 when he took control of Wire & Plastic Products, a maker of wire baskets, and used it as a vehicle to snap up advertising companies round the world. WPP is now the world's biggest advertising company and Sorrell is one of the best-connected people in the business world.
Sorrell has regularly been the top-paid FTSE 100 boss, leading to complaints that the board allows him to dominate the company. But after many years of outperforming the market, life has got tougher for WPP. The company issued a string of sales warnings last year and 2017 was its worst year for performance since the global recession.
Sorrell said short-sighted budget cuts at big consumer goods clients were more to blame than the rise of digital giants that have cut out traditional ad agencies. But WPP's shares have fallen by more than a third in the past year, putting pressure on Sorrell and the board.
Sorrell is trying to revive business by speeding up efforts to integrate WPP's sprawling business so share expertise and offer clients more services. Some investors have said WPP, built up through hundreds of acquisitions, is too complex and have questioned whether a successor to Sorrell, 73, could make sense of his empire.