Omnicom Group's CEO John Wren is waiving 100% of his salary and the group is reducing the salaries of its senior leadership team by approximately a third as a result of COVID-19, Marketing understands. Marketing also understands that it has put in place a hiring freeze and the group is implementing furloughs rather than making permanent staff reductions. Omnicom Group's spokesperson declined to comment on Marketing's queries.
This comes as other networks such as WPP, Publicis Groupe, and Dentsu Aegis Network (DAN) have also implemented cost reduction measures to weather the COVID-19 storm. WPP said it will be freezing new hires, reviewing freelance expenditure and stopping discretionary costs including travel, hotels and costs of award shows. Meanwhile, Publicis Groupe recently implemented a cost-reduction plan of approximately US$540 million to adapt and be recovery ready amidst the COVID-19 situation. There will also be a 30% reduction in fixed compensation for both supervisory board chairman and Groupe CEO, while a 20% cut for the management board members.
Likewise, DAN is also implementing cost saving measures worldwide to ensure ensure business continuity and to safeguard its employees' livelihood worldwide amidst the pandemic. Its spokesperson told Marketing previously that the measures include implementing an immediate hiring freeze, delaying salary reviews in 2020 and temporary salary reductions with the top management team taking the highest percentage cut.
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