Cordiant outlines Bates management team restructure
LONDON - Cordiant Communications is continuing its management shake-up and has named three regional CEOs for its new Bates Group.
The Bates Group -- which comprises Bates Advertising, marketing company 141, branding and design group Fitch, as well as healthcare network Healthworld -- was unveiled by Cordiant in September when it released its interim results.
Toby Hoare, CEO for Bates Advertising Europe, takes on the role of CEO for Bates Group's European operations. In the Americas, Steve Girgenti, CEO of Healthworld Worldwide, adds the additional title of CEO of the Americas for the entire Bates Group. Similarly, Ian Smith, CEO for Bates Asia Pacific, takes the additional title of CEO of the Bates Group in Asia and the Pacific Rim.
The restructuring follows the announcement that Cordiant CEO Michael Bungey is to retire in March next year, to be replaced by Bates Advertising worldwide CEO David Hearn. Charlie Scott, chairman of Cordiant, has also resigned.
The company claims that the new structure will allow clients to "seamlessly" make use of multiple disciplines through one point of contact.
The integration will be financial and operational, and is designed to reduce management and operating costs, creating a unit with a single profit and loss account.
According to Hearn: "The implementation of the structure, along with the establishment of a single P&L helps eliminate financial competition between units. This will create an edge for Bates in retaining current clients, as well as winning new and incremental business."
He added: "It will also deliver a stronger presence in every territory where it is implemented, particularly in the key markets of the US, the United Kingdom, Europe and Australia."
Cordiant is pulling itself back after a year that saw it lose major clients, including both creative and media business for car-maker Hyundai and Wendy's, the US fast food business. Its half-year profits fell by 48% this year to £11.5m, with major shareholders in the company demanding a shake-up in the senior management.
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