High-profile ad executive Charlotte Beers certainly is hitting Madison Avenue with a flourish.
She`s picked off one of the biggest jobs there: chairman-chief executive of Ogilvy & Mather Worldwide, one of the top-five agency-marketing
communications firms.
As boss of Ogilvy, one of publicly held WPP Group`s two largest operating units (the other being J. Walter Thompson Co., where she once held key posts), she will head a firm that had capitalized billings of $5.4 billion in 1991.
Less than six weeks ago Beers stunned the Chicago ad community when she resigned the CEO post at Tatham/RSCG (a much smaller agency), seeking new challenges and perhaps a new environment.
Beers, 56, whose accomplishments include being the only woman to chair the American Association of Advertising Agencies in its 75-year history, has vaulted to the highest post ever held by a woman in advertising.
The announcement Thursday of her appointment didn`t come as a surprise;
her move to Ogilvy had been forecast in this column.
The surprise is that the man she is succeeding at the helm of Ogilvy, Graham Phillips, is remaining as vice chairman for an indefinite period, working on certain major accounts, including Ford Europe. Phillips, 53, has been with Ogilvy 27 years.
Beers, who undoubtedly has signed a multiyear contract with a $1 million- plus annual compensation package, said she was hired by Phillips to take over the CEO post he held since late 1989.
”When I resigned from Tatham, one of the first calls I got was from Graham, saying, `Let`s talk,` ” Beers told this column. Beers met with Phillips, but also with Saatchi and Saatchi, another ad agency giant, and other firms.
Ogilvy, in its press statement, said Phillips last December told WPP (and that presumably means WPP boss Martin Sorrell) that he wanted to step down as chief executive.
However, rumors have been flying for some time that WPP wanted to replace Phillips, and that the job had been ”shopped.” Sorrell and Beers both denied this. Nevertheless, one source close to WPP and Ogilvy says, ”There`s been no empathy between Sorrell and Phillips.”
What can Beers bring to Ogilvy? There`s more than an ad agency involved;
other components include direct marketing and public relations. She`s a brilliant strategist, an executive who knows how to deal with clients at any level-and get results.
While she will be based in Manhattan, Beers will be spending plenty of time in the network. Look for her to show up at Ogilvy Chicago, where she ought to help solidify a somewhat shaky relationship with client Sears Merchandise Group, perhaps a $300 million-plus billing. Her presence in New York should shore up relationships; Ogilvy clients also include Unilever and Kraft General Foods. Ogilvy-New York in recent months has taken some bad hits, especially the loss of a major portion of long-time client American Express.
WPP, like Saatchi, has been under financial pressure, both agencies loaded with debt.
For Sorrell, who claims not to have been involved in the hiring of Beers, though he approved the move, bringing her on board will demonstrate to his bankers that he is doing everything to get Ogilvy financially shipshape and match the turnaround at JWT.
Madison Avenue observers hailed Beers` hiring. ”Sorrell has pulled off a real coup in landing Charlotte,” said one source.
Another said, ”Sorrell and Ogilvy have brought in a .400 hitter.”
But now she`s got to bat at that level or close to it. Rest assured, she won`t be reading her press clippings. She might not have time.
– Young & Rubicam, already an agency for Philip Morris Cos.` Kraft General Foods and Miller Brewing Co. units, now has its foot in the door at the firm`s Philip Morris USA tobacco operation. Y&R was given unspecified trade promotions, special projects and new-product development. Y&R-New York thus joins PM`s other tobacco-cigarette agencies: Leo Burnett Co. here, the client`s principal shop since 1954; Wells, Rich, Greene; and Backer Spielvogel Bates, both New York. By becoming a PM USA agency, Y&R drops out as an agency for RJR/Nabisco`s R.J. Reynolds Tobacco Co. unit, a relationship dating to 1985.
Apparently, Compass Management and Leasing, the leasing agent at NBC Tower, won`t be holding the bag with tenant Kaleidoscope Communications and its Stern Walters Partners ad agency going belly up. Compass, well aware of potential problems at its tenant (occupying two floors at NBC Tower), demanded and got a ”huge amount” of up-front rental money that is being held in escrow, insiders report. Kaleidoscope reportedly signed a 10-year lease-monthly rent believed to be in the $50,000 to $60,000 range.
On the move: Paul Murray joined Mesirow Financial as senior VP, director of sales in the firm`s asset-management division. . . . Candace Wong named managing director of the Chicago office of Rapp Collins Marcoa.
Strictly Personal: Birthday greetings to Nat Wexler, Howard Bernick, Kevin Nicholl, William J. ”Bill” Morrison and Christie Rabke.
