Proxy adviser Institutional Shareholder Services (ISS) has offered its support to WPP’s (LON:WPP) executive chairman Roberto Quarta, Reuters has reported. The news marks a boost for Quarta after another advisory group recently recommended that investors oppose his re-election at next month’s annual meeting (AGM).
WPP’s share price slipped marginally into the red in the previous session, shedding 0.20 percent to 1,232.50p and underperforming the broader UK market, with the benchmark FTSE 100 index adding 56.93 points to end the session 0.75 percent higher at 7,689.57. The group’s shares have lost just under 30 percent of their value over the past year, as compared with about a two-percent rise in the Footsie.
ISS offers support to WPP chairman
Reuters reported this morning that ISS had recommended that WPP shareholders re-elect executive chairman Roberto Quarta at the group’s AGM on June 13. The move came after proxy shareholder service Glass Lewis recently suggested that investors vote against Quarta’s re-election following the ousting of the ad giant’s former chief executive Martin Sorrell.
The newswire meanwhile quoted ISS as saying that while it had raised concerns over the lack of transparency around Sorrell’s departure, ‘the absence of disclosure’ did not imply a failure in governance on WPP’s part.
Quarta became executive chairman after Sorrell’s departure and will hold the position until a new chief executive is appointed.
Analysts on advertising giant
The 27 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,400.00p on the shares, with a high estimate of 1,940.00p and a low estimate of 1,060.00p. As of May 25, the consensus forecast amongst 29 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.