WPP threatens to stop Sorrell's £20m worth share awards if he wins MediaMonks bid
Sir Martin Sorrell's new venture, S4 Capital, is in talks to buy MediaMonks, which WPP is also interested in taking over
Published - Jul 6, 2018 8:58 AM Updated: Jul 6, 2018 8:58 AM
WPP Group is threatening to strip its former CEO Sir Martin Sorrell of share awards worth potentially tens of millions of pounds over his new venture's €300m (£265m) bid to launch a rival multinational network, say reports. Sir Martin Sorrell's new venture, S4 Capital, is in talks to buy MediaMonks, which WPP is also interested in taking over. MediaMonks counts Audi and Lego among its clients.
Sky News has exclusively revealed that WPP, that Sorrell spent three decades building, has written to him alleging that he is "likely to be in breach of his confidentiality obligations".
In its letter, WPP warned Sorrell that a breach of his exit agreement would mean him forfeiting outstanding awards, rumoured to be more than £20m, says Sky News.
There was no non-compete agreement in Sir Martin's final WPP contract, making the company's investors unhappy following his exit. However, he had given a series of confidentiality undertakings, which WPP now alleges he could be in breach of.
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