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| Arthur Sadoun |
Publicis Group today rolled out a $550M cost reduction program as CEO Arthur Sadoun predicts the COVID-19 crisis will trigger "the greatest recession in living memory."
The cuts are designed to help the ad/PR combine to "adapt to the new context and be recovery-ready," according to the CEO.
Sadoun failed to provide financial guidance because the crisis is expected to be "unparalleled in terms of magnitude, complexity and probably length."
Publicis halved its dividend and will delay its payment until September so shareholders can be in "solidarity" with the company and its workers.
Sadoun and former CEO Maurice Levy agreed to reduce their compensation 30 percent during the second and third quarters. Other members of the managment team are taking 20 percent hits.
Sadoun is confident that Publicis will survive the pandemic and recession.
"Our experience in managing cost and cash in times of crisis, our country model and our strong balance sheet will help us to stand firm in this storm and prepare ourselves for recovery."
Publicis registered a 2.9 percent drop in organic growth during the first-quarter.
Public Policy Holding Company grew 27.5 percent to $50.1M during Q1, powered by the accelerating contribution from recent acquisitions and a 5.1 percent hike in organic revenues across its three operating segments.
Institutional Shareholder Services advises investors to vote "no" on a compensation package for WPP chief Cindy Rose at the May 8 annual meeting.
FTI Consulting chalked up a 9.5 percent rise in Q1 revenues to $983.3M, powered by gains in its PR, corporate finance and technology segments.
Stagwell reports 4 percent growth in Q1 net revenues to $585M and a record $141M in net new business wins.
WPP reported a 6.7 percent drop to $3.1B in Q1 like-like revenues less pass-through costs. CEO Cindy Rose says 'it will take time to outpace historical losses."
