WPP AUNZ’s CEO Mike Connaghan resigns after 12 years
WPP AUNZ’s CEO Mike Connaghan has resigned from the advertising and communications holding company after 12 years.
In a statement posted on the ASX, the CEO of the Australia’s biggest advertising and communications holding group said it has been a “truly diverse experience and a privilege to serve the company.”
Connaghan quits after 12 years
“I am proud of the company that we have built and the talented employees and impressive calibre of clients that we have nurtured and supported.
“I am confident that the company will go from strength to strength.”
WPP AUNZ’s executive director John Steedman, will lead an executive steering committee during the transition period.
After Connaghan’s two year stint as the CEO of WPP-owned advertising agency JWT, he became the CEO of STW in 2008.
In 2016, after the merger of WPP and STW in both Australia and New Zealand, Connaghan become the CEO of WPP AUNZ.
Speaking of Connaghan’s resignation, Rob Mactier, chairman of WPP AUNZ, said: “Mike has led the company through a period of extensive change and inspired our people to leverage our scale, global knowledge and collective know-how. It is a testament to Mike’s qualities that he recognises that it is now the right time for renewal as we seek to capitalise on the opportunities that the merger and our leadership position in the market presents, particularly as the industry undergoes further transformation.”
In a series of change for the global holding group, Connaghan’s departure comes just six months after Sir Martin Sorrell abruptly resigned as WPP’s global boss.
WPP later confirmed Mark Read as its new CEO. Read was previously the chief operating officer at WPP for six months.
Just last month, WPP merged two of its biggest agencies Y&R and VML to create VMLY&R.
Meanwhile, the holding group has seen a series of leadership departures this year with Tania Kullmann resigning as Kantar’s CEO in February; Paul Worboys and Miles Joyce stepping down as joint-CEOs of WhiteGrey, Phil McDonald, the CEO of Y&R Australia, departing in March and Dominic Walsh exiting Landor as managing director in June.
A global search is currently underway for his replacement.
Linkedin
Mike, you must feel like a batsman walking off after scoring 275 not out. Well done and congratulations on a wonderful career at the company. Best for the future, whatever that is. Cheers, Robbo.
User ID not verified.
Yep well done MC, good bloke indeed.
Of probably more interest is the ASX update announcing a declining EPS guidance and inability to hit targets this year. Ouch.
User ID not verified.
A fantastic innings, indeed. Well played.
WPP feels a bit like the Liberal Party at the moment…
User ID not verified.
How can it be a good innings? By every metric it is not in good shape. The CEO did not perform, plain and simple. Add to that the burnt bridges, awful agency mergers (someone have a list?), lack of organic revenue growth, the share price . . . more like a golden duck than 275 not out. The WPP takeover just delayed the inevitable, the earnings debacle was the last straw.
User ID not verified.
Kantar, WhiteGrey, Y&R, Landor – all recently departed MDs also recently merged with another agency, just quietly.
User ID not verified.
Interesting that no one is reporting the 35% share price drop in WPPAUNZ as investors hear about the 15% decline expected in earnings per share, instead of 3% growth expectations announced previously.
Train wreck, and no coincidence that MC is off to pursue other opportunities/spend time with family on the same day it happens.
User ID not verified.
Hi Stevo,
We did a story on that at midday.
https://mumbrella.com.au/wpp-aunz-shares-slammed-following-earnings-downgrade-and-ceo-departure-547923
Cheers,
Paul Wallbank
News Editor
WPP (and STW before it) have been responsible for some of the greatest value destruction ever seen in this industry (George Patts, Y&R, The Campaign Palace, et al). In proper industry, mergers are meant to create value through synergy (1+1=3). In this case, they’re a euphemism for endless, and mindless, cost reduction of once great brands and businesses with the inevitable dumbing down and juniorisation of leadership which continues unabated. Hmmm, great innings.
User ID not verified.
Ta Paul.
B&T went as far as blaming Connaghan’s resignation alone for the share price drop with no mention of the ASX announcement, hilarious.
User ID not verified.
For what it’s worth, I loved working with Mike. I always found him straight up, honest, and a great leader who hired good people around him.WPP and GroupM have caused their own destruction in Australia by endless backstabbing, politicking, and a desire to be seen as ‘winning’ against all odds, even if this meant shitty mergers and shitty decisions based on endless spreadsheets.
User ID not verified.
I second that. Massive ship steered brilliantly through very big seas. They will miss him.
User ID not verified.
Bravo! Well said!
User ID not verified.