Martin Sorrell, the CEO of the world’s biggest ad agency, is under investigation over claims of “personal misconduct.”
WPP said in a statement on Tuesday that the company’s board has hired an independent counsel to conduct the probe. The British ad agency added that the investigation is ongoing.
WPP (WPP) said that “the allegations do not involve amounts which are material to WPP.” It gave no further details.
The Wall Street Journal reported on Tuesday that the board is investigating whether Sorrell “misused company assets.”
Sorrell could not immediately be reached for comment.
It’s a trying time for the company. Last month, WPP disclosed annual earnings and an outlook for 2018 that caused its stock to plunge as much as 15% in London.
The conglomerate, which own 400 agencies including Ogilvy & Mather, said that sales will be flat this year, and long term earnings growth could drop as low as 5%.
Ad spending by WPP’s biggest clients, which include Ford (F), HSBC (HSBC), Unilever (UL) and Procter & Gamble (PG), was below average last year and is not forecast to improve.
More broadly, the advertising industry is being rocked by a shift from TV and print ads to digital spots, which are cheaper to produce and easy for companies to make without help from an ad agency.
The firm’s long-time CEO made 拢70 million, or $90 million, in 2015 and 拢48 million, or $62 million, last year.
Since then, he’s taken a pay cut. The company said last year that Sorrell will be paid a maximum of 拢20 million, or $26 million, in 2017.
CNN’s Alanna Petroff contributed to this report.