• by David Goetzl  @dgoetzl, June 9, 2008

Former top Initiative executive Alan Cohen's start date as chief of OMD's U.S. operations has been delayed due to contractual issues. OMD had said Cohen would begin last week, but his contract binds him to Initiative through late October--and Initiative is holding him to it.

Cohen's agreement with Initiative prevents him from taking another post for six months after he gives notice that he plans to leave, sources said. Notice apparently was given at the end of April, which delays his new role heading OMD's domestic operations until around October 25, sources said.

Two months before his departure was announced, Cohen was promoted to the dual roles of president of both Initiative's West Coast operations and worldwide innovation.

While Cohen is forced to sit on the sidelines, Initiative must continue to pay his salary. The in-between "notice period" that Cohen is fulfilling is not uncommon.

Initiative could have released him from his obligations and freed him to start at OMD, but chose not to. (Cohen has a separate, standard non-compete clause that applies to his OMD tenure.)

A representative for Initiative parent Interpublic Group declined comment. OMD said in a statement: "As a policy, OMD does not comment on individuals' employment status and other personal matters."

Last week, Cohen made appearances at OMD's New York office, sources said. While it was unclear what his role was there, the visits may raise some issues regarding the niceties of his contract with Initiative.

Representatives from Interpublic and OMD, which is part of Omnicom, declined comment. Cohen could not be reached.

Once Cohen informed Initiative of his intentions to shift to OMD, the agency could effectively have gone in two directions. Initiative could have released him from his contract, saving it from paying out six months of salary for no work.

Or it could essentially hold the line. Initiative has multiple clients that compete with companies that OMD represents, and the agency may have been wary of releasing an executive with insight that could benefit those competitors. The calculus apparently drove it in that direction.

The competitive landscape between Initiative and OMD clients is notable. Initiative represents Hyundai/Kia; the Dr. Pepper and 7UP brands; Home Depot and the Lionsgate studio. OMD, in turn, works with Nissan, Pepsi, Lowe's and Universal Pictures.

It's unclear why OMD's April 25 announcement about signing Cohen offered the June 1 start date. Once he starts in the U.S. CEO position, he will be based in Los Angeles and report to Page Thompson, CEO of OMD North America.

In its announcement, OMD noted Cohen's well-touted role in helping Initiative land a run of new business--as well as expertise in digital and other emerging media.

One of the first major moves in February by Initiative Worldwide's new CEO, Richard Beaven, was to promote the 51-year-old Cohen, who had been executive vice president and managing director of Initiative West. Cohen joined the agency in 2005 after 20 years in marketing at 20th Century Fox, ABC and NBC--roles that may have helped Initiative land new clients CBS, Showtime and Lionsgate.