Shares in WPP (LON:WPP) have climbed marginally higher in today’s session as the company announced that it had appointed insider Mark Read as its chief executive officer. The move came after Sir Martin Sorrell quit the company earlier this year following an investigation into allegations of ‘personal misconduct’.
As of 08:28 BST, WPP’s share price was 0.23 percent up at 1,281.50p, marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.48 percent higher at 7,468.02 points. The group’s shares have lost just under 10 percent of their value over the past year, as compared with about a 0.4-percent gain in the Footsie.
New chief executive at WPP
WPP announced in a statement this morning that it had appointed Mark Read as chief executive officer with immediate effect. He has been jointly running the advertising giant on an interim basis following Sorrell’s departure earlier this year and has held multiple positions across the company.
“The Board carried out a rigorous selection process, assessing internal and external candidates. That process, alongside Mark's wise and effective stewardship of the business in the last few months, left us with no doubt that he is the right leader for this company,” WPP’s chairman Roberto Quarta commented in the statement.
Read has negotiated a remuneration package of up to a maximum of £7 million annually if he is able to successfully turn around WPP’s fortunes, as revealed by the Guardian ahead of his appointment.
Analysts on advertising group
The 25 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,340.00p on the shares, with a high estimate of 1,845.00p and a low estimate of 1,060.00p. As of August 31, the consensus forecast amongst 27 polled investment analysts covering the advertising giant advises investors to hold their position in the company.