Interpublic Group of Cos. names Philippe Krakowsky as successor to Michael Roth
It's official: Interpublic Group of Cos. has named Philippe Krakowsky as successor to Michael Roth. Krakowsky assumes the post of chief executive officer on January 1, 2021. Roth becomes executive chairman of the board.
Krakowsky, an 18-year IPG veteran, is exec VP and chief operating officer at the holding company as well as chairman of IPG Mediabrands, overseeing Acxiom, Carmichael Lynch, Deutsch, Hill Holliday, Huge, Kinesso, Matterkind and R/GA. Among his posts at IPG, Krakowsky has overseen communications, business development, strategy and talent functions. He will continue as IPG's chief strategy officer.
The elevation of Krakowsky, 58, has been long expected, and in today's announcement, Roth called Krakowsky "the right CEO for the next era at IPG. He is a brilliant strategist and effective leader who has played a key role in developing our open architecture client service model, as well as modernizing our data, marketing services and media solutions," Roth said.
"I appreciate the confidence that Michael and the board have placed in me,” said Krakowsky. “With our people, agency brands, technology companies and culture, we are uniquely positioned to help our clients solve their toughest business challenges. I am looking forward to working with our fifty-thousand people and all Interpublic Group and our clients around the world at this unique time, where we are seeing changes in media and consumer behavior accelerate at incredible speed."
Roth, who was named CEO in 2005, is credited for righting the company's financial course. "In each of the past five years, IPG’s growth rate has outperformed the industry average, and total shareholder return has topped IPG’s peer group over trailing one-, three-, five-, and 10-year periods, marking a reliable level of achievement and progress during a time that saw significant change in the industry with constantly evolving market dynamics," said the company's statement.
Those dynamics are evident in the company's earnings also released today. Third-quarter net revenue fell 5.2% from a year ago to $1.95 billion and organic net revenue dropped 3.7%, attributed to COVID. Net revenue for the first nine months fell 6.7% and organic revenue was down 4.5%.
Said Roth: "In light of the very challenging environment, we are proud of our results in the quarter, and the work our people are doing under such challenging and extraordinary circumstances. This level of performance demonstrates how effectively our companies and our people have adjusted to new ways of working.”