WPP PLC’s (LON:WPP) annual general meeting on Wednesday could be a feisty affair, with Sky News reporting that more than a quarter of investors have cast votes against a pay report, angered by benefits for the advertising giant’s former chief executive Martin Sorrell.
The AGM has received much media attention because of the high-profile departure of Sorrell, with Sky News saying that up to 20% also plan to oppose the re-election of WPP’s chairman, Roberto Quarta.
READ: WPP CEO Martin Sorrell retires after internal probe into alleged personal misconduct
Sorrell quit WPP in April after the board opened an investigation into an allegation of personal misconduct. The company has not given any details and Sorrell has denied any wrongdoing.
On Monday, the Financial Times reported the departure was triggered by staff claims that he had bullied junior employees, plus allegations the tycoon was spotted entering an address in a London red-light district.
Last weekend, the Wall Street Journal claimed one of the subjects of the FTSE 100 group's board investigation into Sorrell was over "whether he used company money for a prostitute", something the newspaper said he later "strenuously" denied.
Meanwhile, a US law firm, Pomerantz said on Tuesday that it has launched an investigation on behalf of WPP investors into the resignation of the long-time chief executive.
Pomerantz said its investigation, which could lead to a potential class-action lawsuit, was into "whether WPP and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices".
At the end of last month, Sorrell unveiled a stock market comeback after cash shell company Derriston Capital (LON:DERR) said it has reached an agreement to acquire S4 Capital Limited, a new company formed by the ex-WPP boss.
S4 Capital recently completed a £51mln equity fundraising of which Sorrell contributed £40mln with the balance of the funds coming from institutional and other investors.
Derriston is to change its name to S4 capital – which it is understood refers to four generations of the Sorrell family – with Sorrell to be appointed executive chairman of the company.