Potential successors to WPP (LON:WPP) boss Sir Martin Sorrell have been identified, The Times has reported. The news comes after last week, the advertising giant appointed an independent counsel to look into allegations of ‘personal misconduct’ by its chief executive, with the move prompting succession concerns.
WPP’s share price rose on Friday, adding 2.11 percent to close at 1162.50p. The stock outperformed the benchmark FTSE 100 index which lost ground in the previous session, shedding 15.86 points to end the session 0.22 percent in the red at 7,183.64. The group’s shares have lost just under a third of their value over the past year, as compared with about a 1.6-percent dip in the Footsie.
WPP lines up CEO successors
The Times reported this morning that internal candidates had attended board meetings at WPP as part of the succession planning and are in contention along with a “constantly refined list of external candidates”. The preparations, outlined in the group’s annual report published last year, include plans for unforeseen changes at the top “in the event of sudden emergencies”.
A source told the newspaper yesterday that the succession planning for more sudden changes encompassed the current circumstances surrounding the CEO, whose tenure has been thrown into doubt after it emerged last week that the board had launched an investigation into an allegations of personal misconduct against him.
Analysts on advertising giant
The 26 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,450.00p on the shares, with a high estimate of 1,940.00p and a low estimate of 1,080.00p. As of April 6, the consensus forecast amongst 29 polled investment analysts covering the FTSE 100 group advises investors to hold their position in the company.