Brand Republic reported yesterday that Cordiant was under pressure from the Active Value shareholders to shake-up its senior management structure by removing senior executives.
Michael Bungey, the Cordiant chief executive, is set to announce that New York-based David Hearn, the chairman and CEO of Bates, will assume the role of Cordiant’s chief operating officer.
It is hoped the shake-up will help improve the group's fortunes. Cordiant has suffered a number of big client defections in the last 12 months, including Bates US loss of Korean carmaker Hyundai's media and creative business, worth £312m. Just last week it lost Wendy’s £130m business.
Cordiant directors will meet with Active Value, led by Julian Treger and Brian Myerson, and discuss plans for the agency group's long-term future. Active Value is now Cordiant's second largest shareholder after Harris Associates. Harris holds a 9.29% stake.
The two fund holders are thought to want to see senior management changes at Cordiant, which could include the replacement of long-time chairman Charlie Scott.
The long-term goal of the two is thought to be a merger with French group Havas, which for some time has been viewed as a potential buyer.
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