Sir Martin Sorrell’s departure from the pinnacle of the advertising industry was triggered by staff claims that he had bullied junior employees, plus allegations the tycoon was spotted entering an address in a London red-light district.

The account, which was published by the Financial Times on Monday, came a day after Sorrell “strenuously” denied paying for a sex worker using funds from WPP, the company he founded and developed into the world’s largest advertising group.

Sorrell’s weekend comments were made after weeks of City speculation regarding the precise reason as to why the businessman had resigned, with the Wall Street Journal reporting on Saturday evening that the advertising group’s investigation into Sorrell had examined if WPP funds had been used to pay for a sex worker.

The investigation found there was no proof of misuse of company money. Sorrell, who had previously enjoyed a stellar reputation within advertising and wider business, resigned in April before the investigation had concluded.

The FT alleged that:



In 2017, two WPP colleagues claimed to have witnessed Sorrell entering a Mayfair address frequented by sex workers;

Sorrell had a reputation within WPP for bullying junior staff and had created a “toxic environment” and a “fear culture” at the company’s headquarters;

The chief executive’s expenses had previously come under scrutiny by the company;

WPP staff were puzzled as to why the chief executive requested advances on expenses from petty cash, despite having access to company accounts or credit cards;

Sorrell sacked his chauffeur after his driver refused to start work at 7am, having driven Sorrell’s wife, Cristiana, home at 2am the same morning.



Sorrell’s representatives told the FT that “great care and attention” was always taken by the company and the chief executive over his expenses and that he “denies there was any misuse of funds”.

Sorrell’s spokesman did not add any comment to previous remarks on the saga.

On Sunday he said: “Sir Martin signed a non-disclosure agreement when he stepped down which precludes him from discussing any of the circumstances surrounding his departure. He has rigidly adhered to this obligation and will continue to do so.

“As regards the allegations [that company funds were paid to a sex worker], Sir Martin strenuously denies them. He will be making no further comment at this time.”

On Sunday WPP said: “WPP has been advised that it cannot disclose details of the allegations against Sir Martin Sorrell because it is prohibited by data protection law from giving such details. Sir Martin chose to resign at the conclusion of the investigation by independent legal counsel.”

When the Guardian visited the Mayfair address cited in the FT report – an apartment above a branch of the bookmaker William Hill – the door was open. A sign reading “Beautiful model” pointed up the stairs to another door, bearing a placard that said: “Beautiful young lady. Please knock.”

A middle-aged woman with a Scottish accent answered, while a younger woman could be seen behind her in the three-room apartment. The older woman gestured toward a dimly lit room containing a double bed and said: “Go on through, the girl will be in in a minute.”

When our reporter explained that he was seeking comment for the Guardian, she said to come back in an hour. The next time the Guardian rang the bell, the younger woman answered the door. She said: “We don’t know this man and we don’t want to answer any questions.”

According to a bystander, different people occupy the premises on different days, meaning the women the Guardian spoke to might not have been there on the day the alleged incident took place.

The latest developments have emerged in the run-up to the advertising group’s annual meeting this week, when the company is braced for a tough reception from shareholders.

Investors, who have routinely beaten up the board about Sorrell’s pay packets over the past few years, are also agitated about how the board had been planning for the departure of its 73-year-old founder, as well as seeking the detail surrounding his exit.

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The company said it will “answer questions as far as we can at the AGM but we won’t be able to elaborate on the allegation”.

Investors are expected to ask about the effectiveness of WPP’s whistleblowing procedures.

Sorrell, who was the longest-serving FTSE 100 chief executive until his departure, was paid £13.9m in 2017, £48.1m in 2016 and £70.4m in 2015.

He is set to receive further payments related to 1.6m shares in a number of award plans that will vest over the next five years. The exact value depends on the company’s performance but at WPP’s current share price the awards are worth about £19m.