WPP delists: leadership lines blur as London HQ, with full control, decrees full silence

News Plus 19 May 2021 - 4 min read

WPP delists: leadership lines blur as London HQ, with full control, decrees full silence

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Tags: WPP Jens Monsees GroupM

The one-time Australian-British communications powerhouse that John Singleton and Sir Martin Sorell clashed over for years as STW and later WPP AUNZ, delisted yesterday. But WPP’s local troops remain uncertain about what's next and the silence from London HQ so far is deafening. A recent company-wide town hall meeting was cancelled and questions over WPP's leadership ranks are swirling. London might need to start calling.

What you need to know:

WPP AUNZ officially delisted yesterday from the ASX, ending a grand experiment with John Singleton's STW.
Australia is now part of the global WPP PLC business; London HQ is yet to provide any future direction or communication to staff or the broader market.
Leadership confusion continues with insiders hinting WPP could adopt a combined WPP/GroupM CEO role for Australia, as it does elsewhere in the UK where GroupM boss Karen Blackett is also Country Manager.
What next for ex WPP AUNZ CEO Jens Monsees still unclear.

WPP phone home

The last 24 hours have officially marked the end of the STW Group heritage in Australia with the rebadged WPP AUNZ now delisted from the ASX.

The delisting ended a five-year saga which began with a $512 million “merger” between the two businesses and culminated in a global takeover worth 70 cents a share (an implied enterprise value of $717 million).

This week's return to a historical ownership norm for WPP was met with a decree of silence from central command in London – the local group has 60 brands nationally. There was no communication to Australian staff, including any company-wide email message from the mothership, insiders say.

Rather, a town hall meeting, which Mi3 understands was not expected to address the takeover, was kiboshed on orders from London.

Insiders claim there is now a groundswell of confusion on where the business is heading - senior executives across the group hope for answers by June.

WPP and GroupM local teams declined to comment as the hunt for a new GroupM CEO to replace Mark Lollback continues and conjecture swirls on the nature of a WPP Country Manager. It is understood there has been no word on structural changes from global, even back to WPP AUNZ boss Jens Monsees.

Monsees is also the centre of attention following the completion of the final takeover step.

Mi3 previously reported on rumblings over the holding group leader’s future. Suggestions that he was eyeing the vacant GroupM CEO role were categorically rejected.

In most markets WPP operates, his current position is run by what most say is a "symbolic role" as Country Manager - there is no P&L responsibility and essentially acts as a conduit for HQ.

The UK may hold clues for how the Australian business will look with both the WPP and GroupM leadership roles combined.

Karen Blackett is WPP UK’s first Country Manager for the region and last year became its CEO for GroupM.

The idea is said to be in consideration here, which could keep Monsees within the business although there are signals his role may be winding back. There are several high profile industry execs vying for the GroupM role. Current WPP group strategy lead, Rose Herceg, is a possibility as interim Country Manager.

Those aware of the GroupM hiring process have indicated there seems to be no rush to fill the role. GroupM here is awaiting the return of investment boss Seb Rennie and the transition of MediaCom CEO Willie Pang into its GroupM Services division.

WPP global was approached for comment prior to publication.

Update: A spokesperson locally reiterated that recruitment for the CEO role is "a priority and is well underway".