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Martin Sorrell Resigns as Chief of WPP Advertising Agency

In 1989, he surprised the advertising world with a hostile $825 million takeover of Ogilvy & Mather, then one of the most influential ad agencies, and continued to snap up global competitors, including Young & Rubicam, a global marketing and communications company. Mr. Sorrell shaped WPP with an iron grip, and fashioned it in his own image. (He is renowned for holding conversations while texting with clients and friends.) Today, WPP is a global advertising behemoth with 130,000 employees in 112 countries, and a market valuation of around 22 billion pounds, or about $31 billion. Yet as he fashioned himself as a superstar executive, Mr. Sorrell also came under sharp scrutiny — especially for his increasingly lavish pay packages, which came to symbolize boardroom excess in Britain. Since 2012, WPP has paid Mr. Sorrell £210 million, making him the highest paid chief executive of any company listed on the FTSE. Despite gains for WPP’s investors, a backlash emerged two years ago, when he pocketed a £70 million payout. Since then, shareholders have balked at backing similarly large pay packages, and turned up criticism over WPP’s governance and the leader-centric corporate culture Mr. Sorrell appeared to have created.

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