WPP chief executive Mark Read to retire

(Sharecast News) - Advertising agency WPP announced on Monday that chief executive officer Mark Read will retire on 31 December after more than 30 years with the company, including seven as CEO. It said Read has decided that "the time is right for him to hand over to a new leader" and that the search for a successor is underway.

Chair Philip Jansen said: "On behalf of the board, I would like to thank Mark for his contributions not only as CEO but throughout his more than 30 years of leadership and service to the company. During that time Mark has played a central role in transforming the company into a world leader in modern marketing services, with deep AI, data and technology capabilities, global presence and unrivalled creative talent, setting WPP up well for longer-term success.

"We are pleased that Mark will continue to lead WPP as CEO until the end of the year, remaining focused on the execution of the company's growth strategy and supporting a smooth transition to his successor, once appointed."

Read said: "After seven years in the role, and with the foundations in place for WPP's continued success, I feel it is the right time to hand over the leadership of this amazing company. I am excited to explore the next chapter in my life and can only thank all the brilliant people I have been lucky enough to work with over the last 30 years, and who have made possible the enormous progress we have achieved together."

At 0930 BST, the shares were down 1.8% at 548.80p.

Russ Mould, investment director at AJ Bell, said: "The fact WPP's share price had more than halved over the past three years meant Mark Read's days were always numbered as CEO. Shareholders can be patient, but there reaches a point where they can wait no longer and something has to change in order to revive the share price.

"Fundamentally, Read has failed to reposition WPP in the face of structural changes to the advertising industry. The rise of artificial intelligence and social media networks have meant that big clients have less of a need to use agencies such as WPP.

"WPP's culture is rooted in traditional advertising and the world has gone digital, leaving the company scrabbling to play catch-up. Whoever replaces Read will have a big task in trying to modernise the advertising agency.

"The share price falling further on Read's departure news is a sign that investors are all too aware of the problems at hand. This isn't a simple situation where all that's needed is fresh thinking from a leadership perspective. WPP needs a complete overhaul and that won't come easily or quickly.

"The fact the company hasn't got a replacement CEO lined up would suggest chaos behind closed doors. It could take another three to six months to find someone else, and by that point, WPP's more tech-savvy rivals could be even further ahead."