IPG, Omnicom Agreement Clears Path For Cohen To Begin OMD Role

Any legal issues that could have prevented the new head of OMD's U.S. operations from starting his job as announced have been resolved. And Alan Cohen, a former top Initiative executive, has been in the high-ranking position since the first week of June, according to OMD.

Initiative, part of Interpublic, had shown a commitment to holding Cohen to a contract that would not allow him to begin the OMD post until some time in October. But hastily convened negotiations--after Cohen started his duties in New York on the planned June 2 date--led to an agreement between IPG and Omnicom (parent of OMD) that cleared the path for Cohen to begin as U.S. CEO.

It's unclear what type of horse-trading at the agency or holding company level may have led to a détente. An OMD representative declined comment, and an IPG representative could not be reached.

Only two months before he left Initiative, Cohen was elevated to president of both the agency's West Coast operations and worldwide innovation.

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Partly due to multiple competing accounts, Initiative seemed determined to enforce a contract clause that would postpone Cohen's start date until the fall. But its stance apparently softened.

Initiative represents Hyundai/Kia, while OMD has Nissan. Initiative works on the Dr. Pepper and 7UP brands, and OMD represents Pepsi. Initiative has Home Depot and the Lionsgate studio, while OMD works with Lowe's and Universal Pictures.

In its April 25 announcement that Cohen would be joining the agency, OMD announced a June 1 start date. Apparently, Cohen officially started in New York, but will be based in Los Angeles.

Cohen helped Initiative win a run of new business during his three-year tenure there, particularly recently.

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