All the latest economic and financial news, as irate WPP shareholders challenge the company over Sir Martin Sorrell’s departure
- Latest: UK CPI unchanged at 2.4%
- WPP shareholder to demand answers over Sorrell
- Sorrell faces allegations of paying sex workers, and bullying
- Sorrell ‘strenuously denies’ allegations
Newsflash: Britain’s inflation rate was unchanged at a one-year low last month, despite the pressure from higher energy prices.
The Consumer Prices Index rose by 2.4% in May, matching April’s rate. Inflation hasn’t been lower since March 2017.
As a WPP shareholder himself, Sir Martin Sorrell could attend today’s AGM and ask a few searching questions.
That’s unlikely, though, as Sorrell signed a non-disclosure agreement when he left WPP in April.
Sir Martin signed a non-disclosure agreement when he stepped down which precludes him from discussing any of the circumstances surrounding his departure. He has rigidly adhered to this obligation and will continue to do so.”
Most WPP shareholders have already cast their votes ahead of today’s AGM.
Sky News’s Mark Kleinman has heard that one in four are opposing the pay report — presumably due to concern that Sorrell walked away with bonuses worth up to £19m.
Revealed: More than a quarter of WPP investors have cast votes against its pay report ahead of marketing services group’s AGM on Wednesday, amid anger at the remuneration arrangements for former CEO Sir Martin Sorrell. 1/3…
Revealed: WPP chairman Roberto Quarta will suffer a more limited revolt, with up to 20% of shareholders opposing his re-election to the board. Company’s AGM is nevertheless expected to be a heated affair. 2/3…
I’ve obtained details of the likely outcomes of the key votes at the WPP AGM, with board members likely to face searching questions about reports in the Wall Street Journal and Financial Times about the circumstances which led to Sorrell’s exit. 3/3
Shareholder advisory group Glass Lewis is also lining up against Roberto Quarta, by advising investors to vote against the chairman’s re-election.
America’s second-largest public pension fund will vote against the re-election of Roberto Quarta at WPP’s annual meeting today.
California-based Calstrs said it would vote against Mr Quarta’s re-election, as well as the re-election of non-executive director Hugo Shong. The FT has more details.
The Times also predicts a lively shareholder meeting:
My colleague Rob Davies has pulled together a list of questions which WPP should answer at today’s AGM regarding Sir Martin Sorrell’s shock departure earlier this year:
The BBC predicts that around 25% of WPP shareholders will oppose the decision to hand Sorrell up to £19m in bonuses over the next four years.
Those payments are due because the company agreed to treat their departing CEO as a “good leaver”, despite the investigation into his conduct.
The front-runner to succeed Martin Sorrell at WPP has launched a review of the company’s codes of conduct.
Mark Read, chief executive of WPP’s digital marketing agency Wunderman, wrote to all staff yesterday to remind staff of the company’s “values”.
“When I come to work I expect to be treated with respect by my colleagues, and every one of you reading this has the right to expect the same.”
“You will no doubt have read the press coverage this week about WPP and Martin Sorrell, including allegations about his behaviour towards people at the parent company.
Here’s the email that WPP’s chief operating officer Mark Read sent to staff re Sir Martin Sorrell. Note he omits the ‘Sir’ and specifically refers to “allegations about his behaviour towards people at the parent company”. pic.twitter.com/psUPljo63t
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Britain’s cost of living squeeze is in the spotlight this morning, as we get new inflation figures showing how price changed in May.
Later today: @ONS releases UK #inflation data for May. Consensus for yoy change in CPI according to #Bloomberg @economics: 2.4%. We expect annual rate to have dropped to 2.3% pic.twitter.com/QiJiTopBIA
#FTSE100 called to open flat at 7705 as investors turn from the Singapore summit to central bank updates, the Fed tightening further, and the ECB potentially discussing QEnd pic.twitter.com/sSoRJobwXx