Sir Martin Sorrell consulting with lawyers over allegations he visited a prostitute

Former WPP chief exec's £20m payout approved by shareholders this week

Sir Martin Sorrell is consulting with lawyers over recent allegations in the press that he used company funds to pay for a prostitute while he was boss of WPP, The Independent understands.

The advertising tycoon stepped down as chief executive of WPP earlier this year after it emerged that he was under investigation over allegations of personal misconduct. Lawyers were looking into claims the marketing boss had misused company assets, according to reports.

In the weeks since his departure, various media outlets have reported that the investigation into Sir Martin centred on allegations he used WPP’s money to pay for a sex worker.

Sir Martin has repeatedly denied the claims and his spokesperson said he had no further comment at this time.

In May, Sir Martin launched a dramatic comeback to the ad industry, with shell company Derriston Capital, where he was appointed as executive chairman. The Independent understands he is still moving ahead with plans to use Derriston to purchase S4 Capital, a recently incorporated firm into which Sir Martin personally invested £40m.

Earlier this week, WPP shareholders voted in favour of awarding Sir Martin with a £20m payout at the group’s AGM. Despite concerns of a shareholder rebellion, the company’s remuneration report was approved, although 29.5 per cent of investors voted against it.

Influential shareholder advisory groups Glass Lewis and PIRC had recommended investors vote against the report. PIRC said its recommendation was “due to the lack of transparency”, around Sir Martin’s exit, adding: “There is no disclosure regarding the reason for the sudden departure of the group chief executive. Shareholders should be informed of significant company events such as this.”

Following the AGM, analysts at Shore Capital said they were reassured about the company’s future but remained cautious due to “the on-going implications of Martin Sorrell’s departure”.