News of Bungey's departure will be seen as a move to placate shareholders, who have become jittery after the company's share price almost halved in the last six months following the loss of major pieces of business, including Hyundai's 拢300m US creative and media account and, more recently, fast-food chain Wendy's 拢130m account.
Cordiant's share price was unchanged this morning at 55.5p, down from a high of 103p six months ago.
However, Cordiant is expected to attribute Bungey's departure to a board shake-up that was put in motion last year.
Bungey is expected to be replaced by David Hearn, chairman and chief executive of Cordiant's main advertising network Bates Worldwide in New York.
It is expected that Bungey will leave the company in the next six months. However, it is thought likely that Hearn will move into his new role in a matter of weeks.
Hearn's appointment will come as no surprise. Only last week, it was reported that he was moving up to become Bungey's chief operating officer, taking on more of the day-to-day running of the company.
UK-born Hearn only joined Bates in March, having previously worked as the chief executive of the Australian food group Goodman Fielder.
Hearn joined the company to replace Bill Whitehead, who quit Bates following the loss of the Hyundai business.
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