By Nick Kostov and Suzanne Vranica

WPP PLC executive Mark Read has emerged as the leading contender to take over as chief executive of the advertising giant, according to people familiar with the matter, following the departure of founder Martin Sorrell.

They cautioned that WPP hasn't finalized its decision.

Ad industry veteran Hamish McLennan, another top candidate, is no longer in the running, the people said. Mr. Read is a longtime WPP executive who was elevated to the role of co-chief operating officer in April after Mr. Sorrell left the company.

"No decision has been taken yet on the appointment of the new CEO and no announcement is expected imminently," a WPP spokesman said. "We are however making excellent progress with the selection process."

Mr. Read, 51 years old, would inherit a company struggling to boost growth as it faces stepped up pressure from clients and upheaval from the dominance of Facebook Inc. and Alphabet Inc.'s Google in digital advertising. Marketers are cutting back on the fees they pay agencies, hitting WPP and rival ad holding companies such as Omnicom Group Inc. and Public Groupe SA. Consulting firms, meanwhile, are increasingly encroaching on Madison Avenue's turf.

Mr. Sorrell spent decades building WPP into the world's biggest ad company by acquiring advertising agencies across the globe and allowing them to compete against each other to win clientele.

Word that WPP was considering outsiders as the new CEO stirred fears internally that the ad giant was facing a major shake-up, according to WPP executives. Mr. Read, by contrast, is expected to retrofit -- rather than discard -- WPP's business model for the digital age.

In April, Mr. Sorrell resigned as chief executive after The Wall Street Journal reported that the company's board was looking into an allegation of improper personal behavior and whether Mr. Sorrell had misused company assets. Mr. Sorrell rejected the allegation "unreservedly" at that time. He has also more broadly denied any wrongdoing.

Write to Nick Kostov at Nick.Kostov@wsj.com and Suzanne Vranica at suzanne.vranica@wsj.com

(END) Dow Jones Newswires

July 27, 2018 11:09 ET (15:09 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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