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SBD/October 11, 2013/Finance
WPP CEO Martin Sorrell Says Company "Can't Afford" To Make Bid For IMG
Published October 11, 2013
EXEC TURNOVER HURTS BUSINESS: Sorrell spoke out against the high turnover of senior execs, particularly CEOs and CMOs in the U.S., arguing it was to the detriment of the sports sponsorship business. Sorrell said, “The average CEO lasts for about four, four-and-a half, five years. It is too short a time. The average CMO in America lasts two. That is too short a period. Decisions get made, CMOs get replaced and whole momentum changes. The single most important factor is consistency.” While Sorrell pointed to Coca-Cola and Procter & Gamble as examples of companies that have sustained investment in sports sponsorship around big events such as the Olympics and World Cup, he said other companies were guilty of dipping in and out. Sorrell: "It is very difficult, the short term attraction of a shirt deal or stadium deal. Is that going to be long-term? The key thing is to sit down and look at what your business is trying to do and decide that this is one of the vehicles that will get you to where you want to go, and do it long-term on a consistent basis."
John Reynolds is a writer in London.