Responding to persistent rumors, Y&R head honcho Ann Fudge confirmed she is looking to install a new chief executive to oversee the flagship ad agency but said she would remain in charge of parent Young & Rubicam Brands.
In a brief statement yesterday, Y&R said Fudge has been leading a search for someone to replace her as head of the agency. But she will continue as chairman and CEO of Young & Rubicam Brands, which includes p.r. agency Burson-Marsteller, branding shop Landor Associates and direct marketer Wunderman.
“She believes that this new team will give the ad agency the depth and focus necessary to address not only the challenges but also the many opportunities for growth at one of the industry’s truly great firms,” Y&R said in the statement.
The Madison Avenue agency declined to provide details of the search or a time frame for completing it. A spokeswoman said Fudge was traveling overseas and couldn’t be reached for comment.
The announcement follows months of speculation and press reports that Fudge’s days atop Y&R, part of conglomerate WPP Group, were numbered.
Since Fudge took over two years ago, ad agency Y&R has suffered a string of client defections, including Burger King, Computer Associates, Sony Electronics and Jaguar.
The agency has also been stung by top level executive departures. This week, William Eccleshare quit as chairman and CEO of Y&R in Europe, Middle East and Africa to take a similar post at BBDO.
In a recent interview with Business Week, Fudge insisted that bringing in a new CEO to turn around Y&R was her intention all along, but she has had a hard time persuading industry observers.
Fudge has been under scrutiny since she joined Y&R. A former Kraft Foods marketing executive, she lacked experience working on the agency side.