M&C Saatchi
M&C Saatchi is an international advertising agency network formed in January 1995 by the brothers Maurice Saatchi and Charles Saatchi after they were ousted from the advertising agency group Saatchi & Saatchi which they had founded in 1970. The Group's holding company M&C Saatchi PLC is listed on the AIM Board of the London Stock Exchange.
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[edit] Foundation
In December 1994 the Board of Saatchi & Saatchi PLC succumbed to sustained pressure from shareholder representative David Herro of Harris Associates L.P. and moved to terminate its Chairman, Maurice Saatchi. Within a month senior executives Jeremy Sinclair, Bill Muirhead, David Kershaw, and a number of Saatchi and Saatchi's London management and creative staff also resigned to join Maurice in a new business which would become known as M&C Saatchi. Charles Saatchi and some consequential clients would soon follow[1] including Gallaher Group, Mirror Newspapers, the retailer Dixons and after a competitive pitch, British Airways and its part subsidiary Qantas.
[edit] Network
A network was initially established in-line with the office locations required by British Airways and Qantas. By early 1996 the network consisted of offices in London, Singapore, Hong Kong, Sydney, New York and Auckland.[2]
By 2011 the network still maintained its foundation offices excepting New York & Singapore (closed 2007 & 2008) and had opened in offices Melbourne (1997), Los Angeles (1999), Wellington (1999), Shanghai (2000), Kuala Lumpur (2002), Paris (2005), Madrid (2005), Berlin (2005), New Delhi (2006), Mumbai (2007), Sao Paulo (2008), Geneva (2008), Tokyo (2009), Cape Town (2010), Guangzhou (2010), Beirut (2010) , Milan (2010) and Johannesberg (2010). As of 2011 the Group also owns the UK based businesses Walker Media (a media buying agency) and Clear Ideas (a strategic brand consultancy).
Operations in Riyadh, Dubai, Suva, Taipei, Bangkok and earlier attempts in Tokyo and Johannesburg had also started and failed during the fifteen year period between 1995 and 2010.
[edit] Ownership
The initial principal shareholders in M&C Saatchi were Maurice and Charles Saatchi and their founding partners Muirhead, Sinclair and Kershaw – collectively known as "the Partners". They generally held 80% of each office while local management held the remaining 20%.[3]
M&C Saatchi remained an independent business until 2004, when all of its worldwide shareholders agreed to float 49% of the agency on the Alternative Investment Market, a sub-market of the London Stock Exchange.[4] At that time the agency's network spanned 11 countries including the UK, the US, Australia, New Zealand and a number of Asian countries. The London listing provided the additional capital required to expand M&C's offering across Europe and Asia, as well as boosting its presence in the US.[5]
In October 2006, Marketing Week announced that Charles Saatchi had divested his 7% stake in M&C Saatchi PLC. Charles had had little active involvement in the running of the agency for a number of years. [6]
As of 2010, the M&C Saatchi Group's significant subsidiaries include: [7]
UK: M&C Saatchi (UK) Ltd, LIDA Ltd, Talk PR Ltd, M&C Saatchi Sports & Entertainment Ltd, Walker Media Ltd and Clear Ideas Ltd. International: M&C Saatchi Agency Pty Ltd (Australia), M&C Saatchi (M) SDN.BHD (Malaysia), M&C Saatchi GAD SAS (France) and M&C Saatchi Berlin GmbH (Germany).
Talk PR Limited acquired 49 per cent of their fashion business from M&C Saatchi in 2010 and M&C Saatchi Agency Pty Ltd (Australia) bought back 20 per cent of theirs.
The following subsidiaries were acquired throughout the year: M&C Saatchi Mobile Ltd. M&C Saatchi.One SAS, The Source Ltd, M&C Saatchi Abel (PTY) Ltd and M&C Saatchi SPA.
M&C Saatchi bought a 25% stake in the social media agency Human Digital in March 2011. Human Digital, which was founded in 2007 as Interaction London, operates under its central strategy unit reporting to Lisa Thomas, chief executive of M&C Saatchi UK Group and is led by its chief executive Christian Gladwell[8].
[edit] People
In 2005 Graham Fink was made Executive Creative Director[9] of M&C Saatchi London.
The rest of the M&C Saatchi Board of Directors currently comprises: [10]
Chairman Jeremy Sinclair: Founding director of M&C Saatchi. He was one of the founders of Saatchi & Saatchi in 1970, became chairman of the UK agency in 1982 and was appointed chairman of Saatchi and Saatchi International in 1986. He later became executive creative director of Saatchi & Saatchi Advertising Worldwide and Chairman of Saatchi & Saatchi plc.
Chief Executive David Kershaw: Founding director of M&C Saatchi. He joined Saatchi & Saatchi in 1982 after obtaining an MBA at London Business School. He became managing director in 1990 and was made chairman and chief executive of the UK agency in 1994
Executive Director Bill Muirhead: Founding director of M&C Saatchi. In 1971 he was one of the first account handlers at Saatchi & Saatchi. He became Group account director and was subsequently appointed chairman of Saatchi & Saatchi Europe with additional responsibility for the London agency. In February 1994 he moved to New York as chief executive and president of Saatchi & Saatchi Advertising Worldwide
Executive Director Maurice Saatchi: Founding director of M&C Saatchi. He founded Saatchi & Saatchi in 1970 and became its chairman in 1980. He received a life peerage in 1996.
Finance Director Jamie Hewitt: Joined M&C Saatchi as UK Group Finance Director just as they floated in June 2004. He was promoted to M&C Saatchi plc Group Finance Director in March 2010. He qualified with KPMG and has extensive experience of working with large advertising marketing groups which include Havas, Dentsu and Interpublic’s McCann Erickson.
Non-Executive Director Lloyd Dorfman: Senior independent non-executive director at M&C Saatchi. He is founder and chairman of Travelex.
Non-Executive Director Adrian Martin: Independent non-executive director at M&C Saatchi. He is currently chief executive of Reynolds Porter Chamberlain Solicitors and a non-executive director of three other organisations. Until 2000 he was managing partner of BDO Stoy Hayward and chairman of BDO’s International Policy Board.
Non-Executive Director Jonathan Goldstein: Independent non-executive director at M&C Saatchi. He is currently Deputy Chief Executive of Heron International, the Pan European Property Investment and Development Company. Until 2007 he spent nine years as Chief Executive of Olswang.
[edit] References
- ^ Findarticles.com, Saatchi Sacking Milwaukee Sentinel, 16 January 1995
- ^ M&C Saatchi Float Prospectus 2004
- ^ M&C Saatchi Float Prospectus 2004
- ^ M&C Saatchi Float Prospectus 2004
- ^ M&C Saatchi Float Prospectus 2004
- ^ http://www.marketingweek.co.uk/analysis/charles-saatchi-sells-stake-in-mc/2053202.article Charles Saatchi sells
- ^ http://www.mcsaatchiplc.com/saa/ir/reports/ar2010/ar2010.pdf
- ^ http://www.brandrepublic.com/bulletin/brandrepublicnewsbulletin/article/1079538/m-c-saatchi-buys-social-media-agency-human-digital/
- ^ http://www.campaignlive.co.uk/factsandfigures/alist/1146/graham-fink/
- ^ http://www.mcsaatchiplc.com/saa/aboutus/board/
[edit] External links
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