CORDIANT UNVEILS BATES GROUP

Marketing Services Agencies Integrated Under New Management Structure

By Published on .

NEW YORK (AdAge.com) -- Cordiant Communications Group on Monday unveiled its new integrated entity, named Bates Group, and the new management structure that will lead it.

Bates Group integrates several key Cordiant companies, including advertising agency Bates Worldwide; direct and interactive firm 141 Worldwide; branding and design consultancy Fitch Worldwide; and health-care specialist Healthworld.

Consolidation and layoffs
As part of the new structure, the company expects to "deliver substantial savings through reduced management costs, the consolidation of operations and the elimination of redundant support functions," the company said in a statement. Bates Group will allow Cordiant to establish a single profit-and-loss statement for the entire company.

The move comes at a

Related Stories:
TROUBLED CORDIANT PLANS REORGANIZATION
Analysts Say Moves Are an Effort to Lure Buyers
CORDIANT STOCK DROPS TO NEW LOW
Company Has Lost Nearly Half Its U.S. Billings
BATES STAGGERED BY WENDY'S LOSS
Cordiant Options Narrow
time when Cordiant is making an effort to reinvent itself after posting the worst first-half 2002 results of any of the advertising holding companies -- and possibly make itself a more enticing acquisition target.

Last month, Cordiant announced CEO Michael Bungey will leave the company next March and will be replaced by David Hearn, chairman-CEO of Bates Worldwide.

Three regional CEOs
As for Bates Group, its management will consist of three regional chiefs and four operating company chiefs, all of whom report to Mr. Hearn.

Under the new structure, Colin Hearn, Paul Stead and Steve Girgenti remain in their current roles as chief executives of 141 Worldwide, Fitch Worldwide and Healthworld, respectively. Mr. Girgenti assumes the regional role of CEO of Bates Group Americas. Similarly, Toby Hoare, currently CEO of Bates Europe, and Ian Smith, CEO of Bates Asia Pacific, take on additional responsibilities as chief executives of Bates Group Europe and Bates Group Asia-Pacific, respectively.

Executives responsible for specific disciplines in certain markets will report to two executives. For instance, Jay Farrell, CEO 141 Worldwide, Americas, will report to 141 Worldwide's Mr. Hearn as well as Bates Group Americas' Mr. Girgenti.

A search for the head of Bates Group, Americas, as well as of Bates Worldwide, remains under way.

In this article:
Most Popular