WPP has appointed Roberto Quarta to take Philip Laders place as chairman of the board, starting next year.
Mr. Quarta will step in as non-executive director and chairman-designate of the worlds biggest advertising group by sales on January 1. He is expected to become chairman after the companys annual general meeting in June.
Mr. Quarta is currently chairman of Smith & Nephew, a FTSE 1000 medical technology company, and IMI, a FTSE 250 engineering business. He is also a partner at the private equity firm Clayton, Dubilier & Rice. Previously Mr. Quarta was CEO and then chairman of BBA Group, chairman of Rexel and a non-executive director at BAE Systems, Equant, Foster Wheeler and PowerGen.
However, Mr. Quarta would join WPP after he steps down from the board of IMI, a replacement was found and a “suitable transition period” has past. Until then the board of WPP has requested Mr. Lader to stay at his current position.
Mr. Lader, who became chairman in 2001, announced his plan to step down by the end of 2014 in the companys annual report issued in April.
“Roberto brings to WPP extensive, diverse experience in corporate governance and global commerce. This completes our refreshment of the Board, which over the last three years has seen the appointment of 10 internationally recognized business leaders from four continents and the phased retirement of long-serving directors,” said Mr. Lader.
After an “exhaustive search, the Board has chosen Roberto to be its next chairman” said CEO Sir Martin Sorrell. He also pointed out that Mr. Quarta’s experience and background would “help develop WPPs strategy in new markets, in new media, in data investment management and the application of technology.”
Mr. Sorrell also said that WPP would benefit from Mr. Quartas presence as it tries to improve communication between its 177 000 employees, who are located at 2 400 offices in 110 different countries.
“It is a great honour to join the board of WPP, a global leader in its field and an outstanding success story in British business. I look forward to working with the Board to help the company as it continues to build leadership positions in the fast changing media markets,” Mr. Quarta said.
WPP gained 2.66% on Tuesday and closed at GBX 1 313 in London. The stock lost 1.60% on Wednesday to trade at GBX 1 292, marking a one-year decrease of 0.77%. The company is valued at £17.43 billion. According to the Financial Times, the 27 analysts offering 12-month price targets for WPP have a median target of GBX 1 500, with a high estimate of GBX 1 650 and a low estimate of GBX 1 150. The median estimate represents a 14.24% increase from the last close price of GBX 1 313.
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