Omnicom’s John Wren and IPG’s Philippe Krakowsky—will they mesh or clash?

Omnicom Group’s planned acquisition of Interpublic Group of Cos. has sparked discussion over how two very different executives—Omnicom Chairman and CEO John Wren and IPG CEO Philippe Krakowsky—will come together to oversee the massive deal. Adding to the intrigue is information found in the companies’ joint proxy statement that indicates Wren did not initially propose for Krakowsky to have as meaningful a role in the combined company. Should it pass all necessary approvals, the largest-ever agency deal will see Wren stay on as chairman and CEO of the merged company, to be called Omnicom. Krakowsky will become co-president and co-chief operating officer alongside Daryl Simm, as well as co-chair of the integration committee post-merger, and will sit on Omnicom’s board of directors. Tracking the latest Omnicom-IPG merger news and analysis It wasn’t always planned that way. In the initial Sept. 14, 2024 proposal, Wren envisioned Krakowsky only as co-president, not co-COO or a board director of the combined company, according to the proxy filed late last week. It was IPG’s board of directors, led by its chair, David Thomas, who negotiated for Krakowsky to have a more influential role in the combined company, as well as the integration process, according to the filing. “On December 4, 2024, Mr. Thomas called Mr. Wren to express the IPG board’s strong desire for Mr. Krakowsky to have a meaningful role in integrating the two businesses and in the go-forward combined company for the benefit of IPG’s stockholders, employees and clients,” the proxy read. The two parties finally agreed to have Krakowsky join in the aforementioned roles, reporting “exclusively to Wren” and reiterated that “his new position would have reduced duties and responsibilities compared to Mr. Krakowsky’s position with IPG and that this new position with Omnicom could entail a material reduction in compensation,” according to the proxy. But Wren also offered for Krakowsky to be paid equal to what he owns in IPG equity and “performance cash awards,” in accordance with his executive change of control severance agreement. Krakowsky stands to have a big payday should the deal go through, as he bagged a golden parachute currently valued at $49 million. It’s unclear how these two leaders will work together moving forward, and Omnicom and IPG, as well as Wren and Krakowsky, declined to comment. But interviews with industry executives who know and have worked with one or the other, or both holding company leaders, yield some clues as to Wren and Krakowsky’s strengths, weaknesses and managerial skills. Clashing or complementary personalities? On the surface, Wren and Krakowsky are not that different. As managers of their respective businesses, they both continue to believe in the value of individual agency brands, as opposed to rivals at agency groups including Publicis Groupe and WPP who have moved to integrate and unify their shops to operate in service of the larger holding company parent. Wren, 72, and Krakowsky, 62, are also both described as hands-off leaders who avoid being in the spotlight at all costs, so both are likely not loving the attention they’ve been receiving recently, according to several current and former executives at Omnicom and IPG who have worked with them, as well as consultants and other sources who have spent time with both executives. Dig deeper and the number of commonalities they share start to drop off, making it unclear whether their differences will ultimately clash or complement each other. Krakowsky was characterized by sources who know him as a quiet-mannered and measured man, who was once described as a rarity in an industry known for big egos and corporate politicking. “He is calm,” an IPG executive executive said. “In a business of a lot of emotion, that can be interesting. He’s a man of few words. When he does say something, I’m very interested in what he’s going to say. He’s understanding, but when he has an opinion it is strong. I think I thought at one point, ‘Oh he’s really nice so he’ll do whatever I want.’ No, he doesn’t. Which is good. You want someone who is not wishy-washy.” To some on the outside, his “nice” traits might lend to an idea that he is not an active decision maker, but the IPG executive argued that Krakowsky is just “private” and guarded about what he’s working on—he’s not known to let many people in. This person said, even now, there is a very “small circle” of IPG people working on the merger. When asked who those people are, the exec laughed and responded: “I would say Philippe … maybe a few others on a need-to-know basis.” Krakowsky wasn’t “necessarily bound” for the role he’s in, the IPG executive said. Before he succeeded Michael Roth as IPG’s CEO at the beginning of 2021, Krakowsky spent nearly 20 years at the holding company touching various aspects of the business. His roles included senior VP and chief communications officer; executive VP of strategy and corporate relations; chief strategy and talent officer; chairman and CEO of IPG Mediabrands; as well as the holding company’s chief operating officer. As one industry executive who has worked with Krakowsky and Wren pointed out, Krakowsky took over IPG during the height of the pandemic, a job that would have been difficult even under normal circumstances. Still, this executive said working with Krakowsky was at times frustrating because he did not move fast enough on certain decisions that would have been good for the business. Several former and current IPG executives have said they pressed Krakowsky on making moves to better integrate the holding company’s media and creative agencies, for example, and that the CEO did not want to do that. “I’m an incredibly impatient person, I would have enjoyed some faster moves,” the industry executive said. Not many, on the other hand, seem to question Wren’s leadership or his ability to make decisions. “John is much more intuitive [than Philippe],” said an agency executive who worked closely with both Wren and Krakowsky. “He’ll make a decision and know that he will have to make adjustments on the fly." Wren is a straightforward, business-oriented guy who can be tough on his executives when he feels he needs to be, several people close to him said. While people close to Wren and Krakowsky called them both fairly “hands off” in terms of allowing agency leaders to run their own businesses, a second IPG executive called Krakowsky “consultative” and said that he will work with leaders to solve problems. In a 2020 profile on Krakowsky as IPG’s incoming CEO, several executives described him as the go-to guy for many agencies when he worked under Roth. Deutsch New York once slapped his photo on a bumper sticker that read, “1-800-CALL-KRAKOWSKY. Got a problem? Call Philippe.” The agency executive who worked closely with both Wren and Krakowsky said the Omnicom CEO, on the other hand, expects his individual agency leaders to come to him with solutions. “He wants people who he trusts will look around the corner,” the agency executive said. “The army around him is a well-oiled machine. His troops get the marching orders.” Of course, it takes time to build a trusted inner circle. Several sources said Krakowsky doesn’t necessarily have that inner circle, but he also has only been CEO of IPG since January 2021. Wren has been CEO of Omnicom since 1997, and chairman since 2018. “If you’re going to integrate across a company, you have to have partners in decision making,” said the industry executive who worked with Wren and Krakowsky. If Wren needs to “light a fire to solve a problem, he’ll light a fire,” the agency executive said. “He can be screaming at you one minute and, the next, high-fiving you because you solved a problem. It’s not personal … it’s business-driven.” For example, Omnicom started calling agency employees back to the office on a more regular basis back in 2022, before most other holding companies were doing so, and Wren was forceful in his conversations with certain agency CEOs about them getting people to return, said some people, including former Omnicom executives close to that situation. Since then other holding companies have moved to enforce more strict return-to-office policies—WPP is mandating employees get back in the office four days a week. In contrast, Krakowsky is not the type to force his agency leaders’ hands in a decision like that, some people close to him said. The industry executive who has worked with Wren and Krakowsky laughed when imagining the latter getting on the phone to yell at anyone. Krakowsky “would be disappointed versus mad,” the industry executive said. “I’ve definitely gone through some difficult conversations with him, but they were thoughtful. It’s always a thoughtful and considered approach [with him].” Some people might view Wren’s style of leadership as more old-school, harkening back to the Mad Men era—and one that might be hard for IPG agency executives to embrace, given they have dealt with the more mild-mannered Krakowsky for the past four years. A former Omnicom agency executive who worked with Wren said that he “has that reputation” of being a bit more brash. But Wren also is “pretty hands off” when he feels he doesn’t need to step in, the former Omnicom agency executive said. Wren, like Krakowsky, is a “man of few words” and “when you ask for something, he will show up for you,” this person said. The former Omnicom agency executive said, though, they wished Wren was a little more relatable. One common trait they both hold is: “neither are driven by personality or needing to be out in front of the business,” the agency executive who worked with Wren and Krakowsky said. How they manage client relationships When it comes to clients, Wren and Krakowsky both seem to be on their A game, according to several sources who work and have worked with them. Which one manages their client relationships better is up for some debate. Both Wren and Krakowsky let their agencies handle their individual clients and intervene, on a pitch or otherwise, when it’s necessary or requested, several sources said. While Krakowsky might approach a client relationship from the mindset of an empath, Wren will approach it from a strategic point of view, some people said. The two IPG executives said Krakowsky is hyper-focused on the holding company’s clients. “He respects and cares about clients, personally and generally [from a business standpoint],” the first IPG executive said. “John is incredibly smart,” the agency executive who worked with Wren and Krakowsky said. “He will firewall and bring alternatives to everything. John is a master chess player [with] clients. People don’t always get how much he does behind the scenes.” The industry executive who worked with Wren and Krakowsky said that if leaders at an Omnicom creative shop knew that an agency slipped up in any way, Wren might offer another of the holding company’s agencies to a client. “He didn’t get hyper involved, but if a big client was in trouble, he would get involved,” this person said, admiring that trait because it showed “he gets the creative business.” Yin and yang Several people who spoke for this story said they believe Wren and Krakowsky’s different styles and personalities will complement each other. The industry executive who worked with Wren and Krakowsky described Krakowsky as an introvert, who always worked well with Roth, who was more of an extrovert, as is Wren. The agency executive who worked with Wren and Krakowsky agreed, noting “The two [Wren and Krakowsky] will meld very well together.” This isn’t the first time Krakowsky and Wren worked together. Before IPG, Krakowsky was senior VP of BBDO Worldwide from 1991 to 1996, before Wren was CEO of Omnicom. Wren helped create Omnicom Group in 1986 and spent time as CEO of the Diversified Agency Services division of Omnicom beginning in 1990. Wren might lean on Krakowsky for talent management, given his consultative nature, as well as for his digital and tech expertise, and his thoughts on how to integrate that into the creative business, some people said. Krakowsky was the architect of IPG’s massive $2.3 billion acquisition of Acxiom LLC in 2018. That deal gave IPG control over a 2,100-person data analytics and management group. It has benefited IPG’s Open Architecture model, which was also championed by Krakowsky, that offers clients integrated solutions across creative, data, design, digital, marketing, media, production, PR and strategy. At the start of his career, Krakowsky also built an artificial intelligence software company that he ultimately sold to Apple. Krakowsky is someone who has been “super fluent in” and able to articulate to clients “our data stack,” the second IPG executive said. “He’s strategic in the way he’s thinking about the industry,” the industry executive said, “the one who made the big bet on Acxiom. That was progressive to do that and important. If John Wren gets the creative business, Philippe brings the other side of the house to bear. He’s fascinated by data. He has that other side that is quite complimentary [to Wren’s].” More: How Omnicom-IPG hinges on data and automation All that said, Wren and Krakowsky might not be the long-term leaders of this new Omnicom. It’s unclear how far off Wren is from retirement, although he has said that he will remain CEO of the combined company for at least three years. Under Omnicom’s “mandatory retirement age policy” for board members, Wren would need to retire from the board no later than 2028, the year after he turns 75. However, the policy states that the Omnicom board “may waive this limitation for any director if the board determines that it is in the best interests of the company and its shareholders to extend the director’s service.” Some people who spoke to Ad Age speculated that Krakowsky might throw his hat into the ring to become Wren’s successor. One former Omnicom executive previously told Ad Age that isn’t likely, and that the deal gives Krakowsky “the exit plan he’s been looking for.” However, Krakowsky’s push to play a bigger role in the combined company might suggest that he would be interested in the top job. Wren is “more the classic charismatic conglomerate deal maker, following the playbook of scale and leverage. [Krakowsky is] more the customer-focused and bookish academic with intelligence and patience. They are potentially complementary in future leadership, should work well together, but I suspect they both have different ambitions for life beyond the deal and long-term neither is the CEO of the merged group,” said Tom Denford, CEO and co-founder of consultancy ID Comms. How other leaders fit in Ad Age recently identified 13 other executives outside of Wren and Krakowsky who appear poised to play decisive roles in the combined company. Some people argued that whoever rises up to lead the various aspects of the business once merged will be even more critical in deciding the fate of this new holding company. “Omnicom-IPG will be like when two families come together in a second marriage,” said Simon Francis, founder and executive chairman of consultancy Flock Associates. “The parents will need to build their own relationship, as they learn to live with one another. The stepkids didn’t choose their parent’s relationship, but have to try to get along. You know the parents will try and create fun times, but you also know there will be friction between the stepkids. Lots of it.” Francis argued that “any trouble that will occur will happen lower in the organization … If OMC and IPG decide to merge production/adaptation agencies or media agency assets, then staff will have personal wins and losses and this is where there may be friction.” “But, let’s also be optimistic and look at successful mergers and acquisitions,” he said. “The advertising world is full of them. OMC and IPG are products of M&A. Both would be considered successful right?” The industry executive said that while they are rooting for this merger’s success for the good of the industry, every Omnicom and IPG leader is faced with deciding whether to stay. When there is any major change at a company, let alone a massive merger, executives have to decide if they truly want a part in it, this person said. “This is a new game,” the industry executive said. “Culturally and functionally, leaders have to question, ‘Is this the thing I want to spend my time on?’" Become an All Access subscriber Get access to exclusive resources including Leading National Advertisers, World’s Largest Advertisers, Agency Report, Agency Review Tracker and TV Pricing Report. Click here

Omnicom’s John Wren and IPG’s Philippe Krakowsky—will they mesh or clash?

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