IPG RENEGOTIATING JOHN DOONER CONTRACT

McCann-Erickson CEO's Current Agreement Ends Dec. 31

By Published on .

NEW YORK (AdAge.com) -- Interpublic Group of Cos. is renegotiating its contract with John Dooner, chairman-CEO of McCann-Erickson WorldGroup, according to an executive familiar with the talks.

The crux of the negotiation is centered on the length of the new contract as well as "performance expectations," said the executive, who would not elaborate.

Expires end of year
Mr. Dooner's contract, which expires Dec. 31,

Related Stories:
INTERPUBLIC NAMES SENIOR VP FOR FINANACE
CFO-COO Chris Coughlin Hires Former Colleague Bob Thompson
INTERPUBLIC NAMES CHIEF OPERATING OFFICER
Pharmacia's Christopher Coughlin to Take Newly Created Post
DAVID BELL NAMED INTERPUBLIC CHIEF
John Dooner Steps Down, Will Return to Head McCann-Erickson WorldGroup
was negotiated almost 10 years ago, in 1994, with updates added since then.

"He is staying and is extending his contract," a spokeswoman for Mr. Dooner said. A spokesman for Interpublic declined to comment, saying: "Our policy is not to comment on such things."

Earlier this month Chris Coughlin, the holding company's chief operating officer and chief financial officer, named Ramesh Rajan chief financial officer at McCann-Erickson WorldGroup, replacing Art D'Angelo. Mr. Rajan moved from the holding company, where he was senior vice president and director of financial operations under Interpublic Chairman-CEO David Bell.

Account wins and losses
McCann-Erickson has had some significant account wins and losses under Mr. Dooner's watch since returning to McCann in February 2003 after being removed from his position as Chairman-CEO of Interpublic.

Capital One, Nikon, L'Oreal, Bass Ale, Pfizer and Sepracor all gave McCann new work this year, while marketing giant Coca-Cola Co. has shifted business out of the global ad network in some parts of the world and Marriott gave part of its creative assignment to independent McGarry Bowen.

Compensation plan
According to an Interpublic proxy statement dated April 2003, Mr. Dooner will be well-compensated whenever he decides to leave. The statement reads, "If he retires, resigns or is otherwise no longer in the employment of Interpublic on or after his 55th birthday he will be paid benefits for 15 years ranging from $930,200 to $2,186,000 per year, depending on the year his employment terminates."

Last year, Mr. Dooner's annual salary was $1.25 million, plus benefits. Mr. Dooner turned 55 in August.

In this article:
Most Popular