M&C Saatchi boss under threat as headhunters called in

Core Viewpoint - M&C Saatchi is facing leadership uncertainty as it considers replacing CEO Zaid Al-Qassab amid pressure from an activist investor and declining sales performance Group 1: Leadership Changes - M&C Saatchi is reportedly exploring potential replacements for CEO Zaid Al-Qassab, who has been in the role since May 2024, due to rising pressure from an activist investor [1][2] - The company has confirmed that succession planning is under review, although it has not commented on specific press speculation [2] Group 2: Financial Performance - M&C Saatchi issued a profit warning, projecting a revenue decline of 7% for the full year, with shares dropping over 25% in 2025, resulting in a market value of just over £150 million [3] - The company is losing ground to tech rivals and is under increasing pressure from investors due to a slowdown in sales amid economic uncertainty [2][3] Group 3: Investor Activity - Harwood Capital, an activist investor, has acquired a stake of over 4% in M&C Saatchi, becoming one of its top 10 shareholders and is pushing for changes, including a potential break-up or sale of the company [3] - M&C Saatchi recently rejected a £50 million bid for its performance arm from Brave Bison, stating the offer fundamentally undervalued the division, which is crucial for its growth plans [4] Group 4: Historical Context - The company has faced scandals and hostile takeover bids in recent years, including an accounting scandal in 2019 that led to a significant boardroom clearout [5] - Previous CEO Moray MacLennan stepped down shortly after Zillah Byng-Thorne became chairman, who was responsible for recruiting Al-Qassab but also left after two years [6]