WPP chairman faces investor rebellion amid Sir Martin Sorrell storm

WPP chairman Roberto Quarta faces a shareholder revolt at Wednesday’s AGM as the row over the departure of founder Sir Martin Sorrell worsens.

With allegations of a visit to a prostitute by Sir Martin now rife, around 20% of investors are expected to vote against Quarta staying in place.

Insiders insist he has enough support from the majority of investors to keep his job, with some believing he did what no one had previously been willing to do — take on Sorrell’s handling of a business he treated as a personal fiefdom.

There is likely to be an even bigger protest against the remuneration report, by which Sorrell will collect £20 million of long-term incentive bonuses for being a “good leaver”.

On Tuesday the Financial Times printed an investigation into Sorrell’s downfall which makes claims about his temper, his treatment of staff and the alleged visit to a Shepherd Market brothel.

Sir Martin denies the brothel allegation but has no comment on the rest. One source noted that plenty of WPP staff continued to work for him for many years, however.

Some investors are angry that Quarta allowed Sir Martin to keep his long-term incentive plan. WPP sources say this money can be clawed back if Sorrell breaches any aspect of his confidentiality clauses, including talking to clients about WPP. He has set up a new company to rival WPP.

But the vote against Sorrell’s pay is non-binding this year.

Quarta arrived at WPP in December 2014 with a fearsome reputation as a cost-cutter, earning the nicknames “Bob the Knife” and “Give No Quarta”. One City source said it was impossible to even discuss succession planning with Sorrell, now 73, before Quarta arrived.

One investor said: “If a fifth of shareholders think you should go, that’s hardly a ringing endorsement. How long can he stay?”

WPP will release a trading update ahead of the AGM, with the City expecting it to be better than last year’s weak performance. The loss of Ford as a client won’t show in the figures until later.

Shareholders are likely to ask for updates on possible plans to dispose of the Kantar market research arm.

Credit Suisse said in a note to clients: “We expect the chairman to say very little on the CEO departure.” It added: “We expect the chairman to reiterate previous comments about being against a break-up.”