The proposed Omnicom-Interpublic Group (IPG) merger is expected to drive cost savings of up to $750 million annually, but at a steep cost—potential job losses on a massive scale, according to media reports.
IPG CEO Philippe Krakowsky is guaranteed a role as co-Chief Operating Officer of the merged entity and a reported “golden parachute” worth approximately $49 million, the report added.
His exit package includes cash, equity, pension, deferred compensation, and other perks. Several other senior IPG executives are also poised to receive significant pay-outs.
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The final compensation figures will depend on IPG’s valuation when the deal closes, currently projected for the second half of 2025—assuming regulatory authorities do not block it.
IPG presently accounts for around 40% of the combined Omnicom-IPG entity’s market value. However, Omnicom’s stock has dropped roughly 15% since the merger’s announcement late last year. Meanwhile, IPG has lost several key clients, though it recently secured Volvo’s global media account.
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