S4 Capital said in its recently released 2022 annual report that succession plans are now being formulated for the company’s executive chairman, Martin Sorrell.  

The annual report was released last week shortly after the company disclosed in a regulatory filing that Sorrell, 78, is undergoing “preventative treatment” following surgery in February to remove a tumor.    

It’s not clear how far along those plans are. The report states that the Nomination and Remuneration Committee met with Sorrell about the issue but offered no details. 

But the fact that a plan is being worked on appears to be a recent development. The previous year’s report mentioned nothing about such a plan other than the responsibility for drawing it up lay with the Nomination and Remuneration Committee.  

This year’s report states that, “The market views the Group’s success as intrinsically linked with the Executive Chairman, Sir Martin Sorrell. Should he not be a part of the Group without an effective succession plan, it could have a significant impact on the share price and market view of the Group. Adverse media reports on Sir Martin Sorrell could therefore have a disproportionate impact on the Group...The Group is working on a succession plan for Sir Martin Sorrell.” 

Succession has been an issue for Sorrell going back to his later years at WPP when investors worried about the lack of a plan when the then long-time WPP CEO, then in his early 70s, had no plans to retire. He was forced out in 2018 and was eventually succeeded by current CEO Mark Read.  

And while a succession plan may now be on the drawing board at S4 Capital, Sorrell has not given any sign that he plans to retire anytime soon.  

In the filing disclosing Sorrell’s follow-up tumor treatment, the S4 chief wrote that other than a reduction in travel he will be “fully engaged” in the company’s affairs. "Business as usual," he added.