Y&R is promoting Mitch Kurz to chairman of client services and vice chairman of Y&R, overseeing account management worldwide for both Y&R Advertising and sister units. He will step down as president-chief operating officer of Y&R Advertising and the Y&R Wunderman Cato Johnson Partnership.
REPORTING TO VICK
Both of those operations will now report to corporate Chief Operating Officer Edward Vick, promoted earlier this month as the start of a succession plan for Y&R Chairman-CEO Peter Georgescu.
Y&R has moved back its planned IPO, said executives close to the situation, to improve profit margins, which had risen to more than 10% but are now back down to 8% to 9% as a result of poor results at Burson-Marsteller, the PR unit whose internal operations are likely to be restructured. The company declined comment on an IPO.
In October, Y&R named Bear Stearns & Co. and Donaldson Lufkin & Jenrette as lead underwriters, with Goldman Sachs & Co., Furman Selz Co. and Smith Barney & Co. also participating in the deal, which could value the company at more than $2 billion.
The delay is not a problem, said industry observers.
"It sort of makes sense. When business is growing, the longer you wait, the higher the value," said Alan Gottesman, managing director of consultancy West