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Ogilvy PR Rebrands After Former Boss Linked With Prostitution

WPP owned PR agency Ogilvy PR, has rebranded as OPR despite the Ogilvy named being one of the strongest brands in the world, the move comes as the former global boss of Ogilvy PR, and WPP Martin Sorrell has been linked with using Company money for prostitutes.

The PR Company to several consumer technology Companies including Microsoft, Toshiba Canon and motor vehicle Company Ford has not commented on the prostitution claims.

Prior to the exit of Sorrell who was initially suspended from the advertising and marketing Company the board of WPP said last month that they were looking into an allegation of improper personal behaviour and whether its chief executive had misused company assets, and that the board had retained a law firm for a probe.

WPP said at the time the allegation didn’t involve sums that were material to the company. Mr. Sorrell said then that he rejected the allegation “unreservedly.”

In the USA  OPR stands for Office of Professional Responsibility and is part of the United States Department of Justice (DOJ) responsible for investigating the actions of Federal employees.

Now shareholders in WPP are demanding answers as the Company hides behind  “none disclosure” agreements which some shareholders have described as “PR Spin” for not wanting to reveal the real reasons why Sorrell one of the highest paid advertising industry executives was forced to step down.

In a statement at the weekend, a spokesman for Mr. Sorrell said, “When Sir Martin Sorrell stepped down from WPP he signed a nondisclosure agreement which he has adhered to and will continue to adhere to.”

“The Company has not disclosed details of the allegation of personal misconduct against Sir Martin Sorrell because it is prohibited by data protection law from giving such details,” a WPP spokesman said in a statement Friday. “Martin chose to resign after conclusion of the investigation.”

Under the terms of his departure, Mr. Sorrell, 73 years old, is eligible to receive a maximum of some 1.6 million shares from various long-term incentive programs. At WPP’s current share price of GBP12.16, the full awards are worth more than GBP19 million, or more than $25 million. These shares will vest over the next five years, according to WPP.

Mr. Sorrell, who didn’t have a noncompete clause in his contract, is planning to create an ad company.

“The Company has not disclosed details of the allegation of personal misconduct against Sir Martin Sorrell because it is prohibited by data protection law from giving such details,” a WPP spokesman said in a statement on Friday. “Martin chose to resign after conclusion of the investigation.”

Under the terms of his departure, Mr. Sorrell, 73 years old, is eligible to receive a maximum of some 1.6 million shares from various long-term incentive programs. At WPP’s current share price of GBP12.16, the full awards are worth more than $35 million. These shares will vest over the next five years, according to WPP.

In the UK Liberal Democrat leader Sir Vince Cable claims that WPP must come clean over Sorrells exit from the advertising giant and his links with a prostitute.

Sir Martin strongly denies the claim, but the conclusions of the internal inquiry have not been published.

Sir Vince said the secrecy was damaging the City and fostering wild rumours.

“It is clear that WPP must publish the report into Sorrell’s departure, if for no other reason than to stop any more rumours,” said Sir Vince, a former business secretary.

“Shareholders should not be kept in the dark. We’re in danger of returning to the City’s worst pre-financial crisis practices. WPP and Sorrell can help prevent a return to that damaging environment that by putting NDAs (non-disclosure agreements) and secrecy to one side.”

His comments come ahead of WPP’s annual shareholder meeting on Wednesday where questions are expected to be raised about Sir Martin’s resignation in April.

 

 

 

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