Major WPP investors directed by Glass Lewis advisory group are demanding information surrounding the exit of founder Martin Sorrell last month.
GL took aim at Roberto Quarta, WPP chairman and nomination committee chief, for failing to provide details about the internal probe into Sorrell’s alleged personal misconduct.
In a report to investors, GL also expressed concerns about the transparence and efficacy of the succession process at the ad/PR giant.
“Despite previous assurances, we believe the nomination committee has failed to adequately prepare for the replacement of Sir Martin,” said GL. “Our concerns are heightened by the opaque nature of the investigation of into Sir Martin and his ‘good leaver’ status. Absent further information regarding Sir Martin’s retirement; we believe shareholders are unable to determine the extent to which should be treated as a ‘good leaver.’”
Sorrell’s good leaver status allows him to keep more than $27M in future payouts.
GL is telling WPP shareholders not to back Quarta’s re-election to the board at the June 13 annual general meeting.