Saatchi & Saatchi Chairman Kevin Roberts to Resign: ‘I Failed Exceptionally Fast’

Publicis announced this morning that Saatchi & Saatchi executive chairman and Publicis Groupe head coach Kevin Roberts will resign as of September 1 — ahead of his previously scheduled May 1, 2017 retirement.

Roberts had been placed on a leave of absence following a Business Insider interview in which he made controversial comments regarding gender diversity issues. He told Lara O’Reilly saying “The fucking debate is all over” and he sees no need to spend “any time” worrying about gender diversity at his agencies. He also dismissed those who spend time campaigning over the issue, taking aim at Cindy Gallop specifically as having “problems that are of her own making.”

The press release from Publicis read simply:

“Publicis Groupe announced today the resignation of Kevin Roberts Head Coach de Publicis Groupe, Executive Chairman of Saatchi & Saatchi/Fallon, Member of the Management Board. The Supervisory Board and the Chairman and CEO of Publicis Groupe took note of Kevin Robert’s decision to step down with effect from September 1st 2016, prior to his retirement date due in May 2017.”

Roberts’ PR firm released his own statement to media in which he apologized for the “upset and offence” caused by his “miscommunication on a number of points.” Here’s the statement in full: 

“Fail Fast, Fix Fast, Learn Fast” is a leadership maxim I advocate.

When discussing with Business Insider evolving career priorities and new ways of work/life integration, I failed exceptionally fast.

My miscommunication on a number of points has caused upset and offence, and for this I am sorry.
I have inadvertently embarrassed Saatchi & Saatchi and Publicis Groupe, two companies I love and have been devoted to for almost 20 years.

I have expressed my regret and apology to the companies for the furor my remarks and language stimulated, and I extend this to colleagues, staff and clients.

So that we can all move forward, I am bringing forward my May 1, 2017, retirement from the company, and will leave the Groupe onSeptember 1, 2016.

There is a lot of learning to reflect on, and within the thousands of tweets, comments and articles there are many powerful and passionate contributions on the changing nature of the workplace, the work we do, what success really looks like, and what companies must do to provide women and men the optimal frameworks in which to flourish.

I believe that new thinking, frameworks and measures are needed to make more rapid progress on diversity in all its forms, in all professions and occupations. Hopefully, the focus on this serious and complex issue will gather momentum.

Cindy Gallop, who Roberts mentioned directly, released her own statement to Business Insider in response to the news of Roberts’ resignation. She claims Publicis could have made a greater statement to the women it employs if it had fired Roberts but says she anticipates greater change moving forward.

Gallop’s statement in full:

I’m pleased to see that Kevin Roberts has resigned, given that his comments made him non-credible as a chairman charged with inspiring, motivating and promoting into leadership the thousands of women who work for Saatchi and Saatchi Worldwide; as a coach charged with training and developing the industry leaders of the future; and a leader whom huge clients selling brands. products and services to millions of women trust with their own brand reputation, communication and sales.

However, given he was forced to resign, PublicisGroupe would have made a far greater statement to every woman working within their network, at every client brand they represent, and to the industry as a whole, if they had fired him.

I look forward to Maurice Levy and Publicis Groupe now spearheading a very dramatic seachange in the way the white male leadership of our industry welcomes women and people of color up to the leadership ranks shoulder to shoulder with them, and to seeing tangible, visible action on their part in the coming weeks. Starting with Maurice Levy attending and speaking at the 3PercentConference in NYC this Nov 3/4 (where I will also be speaking) – the perfect platform to address the female talent and creativity in our industry and demonstrate how much he values it.

Some context for the interview that led to this imbroglio: O’Reilly declined to speak to us about it directly, but we hear that a PR firm that represents Roberts as a client (but has no relation to the Saatchi or Publicis organizations) set up the meeting when Roberts happened to be in London last month.

This interview was more about promoting Roberts as a thought leader than discussing any of his work or future plans for Saatchi & Saatchi/Publicis Groupe. During the same session, O’Reilly asked him to comment on the current U.S. presidential election; he noted that Donald Trump has a simple and effective slogan and said that Hillary Clinton is “bereft of a selling line … bereft of a dream.”

There do not appear to have been any PR professionals in attendance during the interview. Otherwise someone surely would have told Roberts to either avoid the issue of gender equality altogether or to stop while he was ahead.

It’s not clear at this time whether Saatchi & Saatchi plans to name a successor.

Publicis Places Saatchi Chairman Kevin Roberts on Leave of Absence Over Diversity Comments

A quick summary of the weekend’s events surrounding Saatchi & Saatchi global chairman Kevin Roberts, in case you missed it:

On Friday, we wrote about Roberts’ London interview with Kara O’Reilly of Business Insider. In that conversation, he made some controversial statements about gender issues in advertising, essentially saying diversity in terms of male/female leadership was no longer an issue and that he doesn’t spend “any time” on such matters at his agencies. In his own words, “The fucking debate is all over.”

He went on to dismiss some who campaign on the issue, listing Cindy Gallop in particular as having “problems that are of her own making.”

Various parties seemed thoroughly unimpressed by his comments, and the situation escalated quickly.

Early Saturday morning — after the BI post ran and we aggregated it — Publicis Groupe CEO Maurice Levy sent an email to Campaign in which he wrote: “The opinion expressed by Kevin is neither shared nor supported by myself or the Groupe. It is his own, expressed in his unique and provocative way and does not reflect the Groupe opinion or policy.”

Kat Gordon of the 3 Percent Conference then told Adweek that her group’s own research disproves Roberts’ points, stating, “I can say with complete statistical backup that Mr. Roberts is wrong about gender bias being solved in the ad world.”

12 hours later, Roberts was pushed out of his position — at least temporarily. On Saturday evening, Publicis PR sent a statement to Adweek and others about the decision, explaining how Publicis Groupe Chairman & CEO, Maurice Lévy had also sent out an internal memo distancing himself from Roberts comments and reiterating the holding company’s “no-tolerance policy towards behavior or commentary counter to the spirit of Publicis Groupe” and its commitment to diversity. Roberts’ long-term future with Publicis and Saatchi & Saatchi will ultimately be determined by the Publicis Groupe Supervisory Board. 

Adweek then reported that Saatchi & Saatchi CEO Robert Senior also released a statement disavowing Roberts’ comments. “Kevin has given what are his personal views on the subject of gender diversity. However, those views are not mine, and nor are they the position of the agency,” he said. 

“Saatchi & Saatchi is, and has always been, a meritocracy. We live and die by our people, our talent, and it makes no difference to us whether that talent is male or female,” he continued, adding that 65 percent of the agency’s staff are female, including senior leadership roles.

“However, the issue of gender diversity is not in any way over for our industry. It is live, emotive and vital for the communications business that we continue to insist that the best people, whatever their gender, are able to achieve their potential,” he added. This is what we strive for at Saatchi & Saatchi, and is what we will continue to strive for alongside all of the best agencies in our industry.”?

Mr. Roberts himself has yet to make a comment on this story.

Here’s Publicis Groupe’s full statement:

Following the comments made by Saatchi & Saatchi Executive Chairman and Publicis Groupe Head Coach, Kevin Roberts, in a recent interview with Business Insider, Publicis Groupe Chairman & CEO, Maurice Lévy addressed a statement internally to all Publicis Groupe employees to reiterate the Groupe’s no-tolerance policy towards behavior or commentary counter to the spirit of Publicis Groupe and its celebration of difference as captured in the motto Viva la Difference!

It is for the gravity of these statements that Kevin Roberts has been asked to take a leave of absence from Publicis Groupe effective immediately. As a member of The Directoire, it will ultimately be the Publicis Groupe Supervisory Board’s duty to further evaluate his standing.

Diversity & inclusion are business imperatives on which Publicis Groupe will not negotiate. While fostering a work environment that is inclusive of all talent is a collective responsibility, it is leadership’s job to nurture the career aspirations and goals of all our talent.

Promoting gender equality starts at the top and the Groupe will not tolerate anyone speaking for our organization who does not value the importance of inclusion. Publicis Groupe works very hard to champion diversity and will continue to insist that each agency’s leadership be champions of both diversity and inclusion.

Big Changes at Publicis: Levy Staying, Razorfish Absorbing Rosetta

Some French dudeIn case you haven’t seen it already this morning, The Publicis Groupe officially rewarded Maurice Levy for his failure today by extending the current chief executive’s role until (approximately) The Avengers 3.

Despite the fact that Levy assured The Guardian that he would “not be seeking a new term” in the halcyon days of 2010 and that other reports had him set to leave next year, it seems that Levy will stick around at least until the approval of all accounts at the end of 2016 — and that he will leave in early 2017.

Obviously, “No clear successor has been appointed to replace Levy.”

Two former candidates will definitely not be replacing him, though.

(more…)

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The Truth Comes Out: Omnicom-Publicis Merger Was Actually a Zany Agency Prank

In the weeks since the Omnicom and Publicis Groupe megamerger fell apart, many have been asking why such a problematic union was proposed in the first place. Well now we know: It was all another agency's elaborate marketing stunt.

In an entertaining parody case study, Fred & Farid Group takes full credit for the "Omnipub" merger, an idea hatched to highlight just how far holding companies would go in their quest for world domination.

"Why not organize an epic fail with two giants? Instead of the usual David against Goliath, we made a Goliath against Goliath story. We created … 'The Impossible Wedding.'"

Setting events in motion like a Shakespearean villain, Paris-based Fred & Farid says it forged letters between Omnicom CEO John Wren and Publicis CEO Maurice Lévy, making each think the other was on board with the merger. Then the pranksters sat back and watched the hilarity ensue.

Like any good case study, #Omnipub includes some impressive metrics: 24,000 mentions, 500,000 media impressions and $100 million in wasted fees (quoted from our own coverage here at Adweek). 

So congrats to Fred & Farid for pulling off one truly epic viral prank. You got us!




Trouble Brewing in the Publicis Omnicom Camp

publicis-omicron

Over the weekend you may have heard of some newfound uncertainty regarding the world’s soon-to-be-biggest agency: the bastard child of Publicis and Omnicom.

Let’s review the reports, shall we?

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Maurice Lévy Returns, Now with Balloons in Tow, for Publicis Groupe’s 2014 Greeting

publicis-groupe2014

Maurice Lévy is back this year for the new Publicis Groupe New Year’s greeting. After toying with YouTube’s functionality last year,  the holding company, with the aid of their DigitasLBi France unit, has once again found a new way to make their greeting interactive.


This year, Publicis built their message around the theme of #TheMoretheMerrier in honor of their expected merger with Omnicom. To accomplish this, they’ve made it so “The more people that join in during the video, the merrier it will become.” So, what does that mean exactly? Well, if you watch the video alone, nothing special happens. But if you watch with a friend, Maurice Lévy will deliver his speech in a confetti storm. Adding more people to the mix will result in “gospel singers, cheerleaders, Chinese dragons and a few other surprises.” It’s a pretty cool concept, managing to be interactive in an intriguing new way.

 

To accomplish this, Publicis’ tech team developed “a fancy facial detection algorithm that allows a webcam to count how many people are actually watching the video together.” The facial recognition software was conceived by “a 21 year old Russian math genius” working for DigitasLBi France. The software is the “first of its kind to detect up to ten faces simultaneously” while the video plays. “The More the Merrier” is the first video to count the number of viewers, rather than views, on YouTube. That’s a lot of technological firsts for a New Year’s greeting. By the way, in case you were wondering, it takes 1,487 balloons to cover Maurice Lévy.

Credits after the jump. continued…

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Publicis Groupe Forms New ‘Mega Region’

publicis130

We can’t say that the term “mega region” is embedded in our lexicon, but that’s what they’re calling Publicis North America, the new entity that combines Publicis USA and Publicis Canada to create the largest Publicis Groupe region outside of the holding company’s hub in France.

Eleven-year Publicis vet and Publicis USA boss Susan Gianinno has now assumed the role of chairman of the newly expanded region, focusing on global/regional clients and “priority global initiatives” while working in tandem with recently appointed Publicis Worldwide CEO, Arthur Sadoun. Along with her new chairman role, Gianinno will also be heading to Harvard next for a one-year fellowship. Meanwhile, Andrew Bruce, who has spent the last 15 years at Publicis Canada, where he most recently served as president/CEO, will now take on the CEO post of the newly formed Publicis North America.

Regarding the new moves, Publicis Groupe chief Maurice Levy says in a statement, “This is a wonderful and very prestigious appointment for Susan and for us. I am personally very proud of her and expect that she will bring even more to our people and clients during, and after, this experience. I am sure that under this new team leadership, Susan and Andrew, this new mega region will generate great work for our clients and formidable growth.”

 

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What Does the Publicis/Omnicom Merger Mean for the Industry?

As one might imagine, the announcement (and Vine video) of the biggest merger in advertising history is causing quite a reaction from those in the industry. Above, Keith Hunt, managing partner of M&A consulting firm Results International, hypothesizes about the implications the newly formed Publicis Omnicom Group will have.

As Hunt notes, the merger means the company will be able to buy media very cheaply, leapfrogging WPP in the process. But, Hunt wonders, how far can you push down prices? At one point do vendors draw the line?

Also, Hunt says, there’s the issue of who’s in charge. Co-chief execs, John Wren (Omnicom) and Maurice Levy (Publicis)  are elder statesmen. Levy, the older of the two at 71, is now on the hot seat in terms of naming a successor, that is, if the balance of power between Publicis and Omnicom remains a priority. As WPP’s Martin Sorrell said in an interview today, “It’s a nil-premium merger — effectively a takeover of Publicis by Omnicom [without exchange of money].”

Finally, says Hunt, there’s the matter of positioning. It benefits the new company to frame the merger as one that hinges around new technologies and emerging markets, allowing Publicis Omnicom Group to compete against tech companies outside advertising agencies like Adobe. “Exciting times,” he adds before staring into the camera wistfully. It’s only the beginning.

Check out Wren and Levy bonding after the jump.

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Publicis, Omnicom Group Merge to Become World’s Biggest Advertising Company

In a somewhat surprising weekend move that’s now been broadcast everywhere, French advertising network Publicis and New York-based Omnicom Group announced today that they are merging, supplanting London’s WPP to become to world’s largest advertising firm.

The news comes as a bit of a shock, especially considering the announcement was made on a summer weekend. Reports of merger negotiations first happened on Friday afternoon, followed by more concrete details on the merger coming out yesterday via a report from Bloomberg. The newly christened Publicis Omnicom Group will be led by Omnicom CEO John Wren and Publicis CEO Maurice Levy, who will acts as co-chief executives.

The merger is sending shockwaves throughout the industry, with reaction to news quite mixed. While many agree that shareholders will benefit from the news, looming doubts remain about how the new company will strike a balance of power with its bases split between continents, as well as how Publicis Omnicom Group will go about solving the many client conflicts as competing brands (Coca-Cola and Pepsi, McDonald’s and Taco Bell) are brought under one roof.

Omnicom (whose properties include BBDO, DDB, and TBWA) and Publicis (whose properties include Leo Burnett, DigitasLBi, Saatchi & Saatchi and media giant Starcom) have a combined annual revenue of $23 billion. We’ve heard that Levy has sent out a network-wide email about the merger.

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