Sir Martin Sorrell is facing a board probe into whether he used WPP money to pay for a sex worker.
Sorrell, who was the longest-serving FTSE 100 CEO until his departure from WPP has ‘strenuously’ denied the allegations.
The statement follows a report in the Wall Street Journal, which claimed one of the matters of the Board investigation into Sorrell’s alleged personal misconduct regards whether he used funds from WPP – the company he founded and developed into the world’s largest advertising group – to pay for a sex worker.
The findings of the investigation are not public.
Sorrell’s spokesman said on Sunday: “Sir Martin signed a non-disclosure agreement when he stepped down which precludes him from discussing any of the circumstances surrounding his departure. He has rigidly adhered to this obligation and will continue to do so.
“As regards the allegations which have appeared in the Wall Street Journal, Sir Martin strenuously denies them. He will be making no further comment at this time.”
A spokesman for WPP added: “WPP has been advised that it cannot disclose details of the allegations against Sir Martin Sorrell because it is prohibited by data protection law from giving such details. Sir Martin chose to resign at the conclusion of the investigation by independent legal counsel.”
The advertising group is to host its annual general meeting this week, with shareholders expected to raise concerns about executive pay plan for the exiting CEO.
Sorrell’s resignation, which has been treated as a retirement, means he is set to receive payments related to 1.6million shares in several award plans that will vest over the next five years – The Guardian reports.
His resignation follows allegations by a whistle-blower concerning his personal conduct, use of company money, and an investigation into the potential misconduct. He denied the accusations. Roberto Quarta, the WPP chairman, has taken on the role of Executive Chairman at the firm.
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