IPG’s Krakowsky in line for multi-million dollar payout – and new Omnicom job
Omnicom/IPG may be looking for $750m a year in savings (rival Sir Martin Sorrell reckons up to 10,000 jobs may go if the merger succeeds) but IPG CEO Philippe Krakowsky (below) is guaranteed a new job as co-COO of the entity and a payout reportedly worth around $49m.
This is, according to Ad Age, the “golden parachute” he would be entitled to if the merger completed now. It will actually complete some time in the second half of 2025 (or not at all if regulators object too hard.) Other senior IPG execs also look set to cash in. The payouts include cash, equity, pension/deferred compensation and perks/benefits.
The final payments will be based on IPG’s value when the merger completes. It’s currently valued at 40% of the merged Omnicom/IPG. Omnicom’s share price has dropped some 15% since the merger was announced late last year while IPG has seen a number of client exits although it did win Volvo media globally.
Coming on top of the ructions at WPP following CEO Mark Read’s demand that employees return top the office four days a week, the disclosure of such deals for top management will only reinforce workforce dissatisfaction with the doings of their masters. Such mergers and the likely impact of AI will lead to a pretty grim 2025 for many employees of the world’s biggest ad companies.