16657: Bored By Publicis Groupe Board.

 

MediaPost reported Publicis Groupe executed another merger/consolidation, although this time involving its supervisory board and management board. In short, the two boards are now one, with Arthur Sadoun adding Chairman to his CEO title.

 

Looks like a more streamlined, exclusive group of White men and White women—and the person named vice chair of the new board is the daughter of late Publicis Groupe Founder Marcel Bleustein-Blanchet, so there’s potential nepotism at play too.

 

Given the White holding company’s grand investments in technology, wouldn’t it be cheaper and more efficient to handle board duties with Marcel or other AI tools?

 

Shareholders Approve Single Publicis Board, Sadoun Adds Chairman Duties

 

By Steve McClellan

 

At its annual meeting today, Publicis Groupe shareholders voted overwhelmingly in favor of a proposed new governance structure for the company, replacing its current supervisory board and a separate management board (called the Directoire) with a single board of directors. The proposal was approved by a margin of 95%.

 

The board of directors met following the general meeting to formally adapt the new structure and appointed Arthur Sadoun chairman of the board, in addition to his current CEO role.

 

The company announced the proposal last month, asserting that the new streamlined structure would be the best way to ensure the company’s continued momentum and growth in the future.

 

Earlier this month, the firm disclosed that Andre Kudelski would be appointed lead director of the new board. He is the chairman and CEO of Swiss technology firm Kudelski Group and has been on the Publicis Supervisory board since 2016.

 

Maurice Lévy, who is now honorary chairman of Publicis Groupe (previously chairman of the Supervisory Board and CEO before that) stated: “Arthur Sadoun knew how to take the right turns, ensure growth and place the Group at the top of the sector pyramid. I am very proud of his career and convinced that under his leadership the Group will go further and higher.”

 

“The governance adopted by the shareholders leads, following the decisions of the Board, to an exemplary balance of powers with Élisabeth Badinter as Vice-President, and who continues to ensure that all stakeholders are treated fairly in the respect for the Group’s values, André Kudelski as Lead Director who will provide valuable support to the Board in this new framework, and finally, tighter Committees with very clear missions.”

 

Those committees include Nomination, Remuneration, Audit and Financial Risk, and Strategic, Environmental & Social. Committee leads were appointed by the board after the annual meeting.

 

Added Sadoun said, “This change makes it possible to maintain the tandem that we have formed with Maurice Lévy since 2017, and to continue the dynamic that has propelled Publicis to the top of its sector. Thanks to the stability of our partnership, the incredible commitment of the Group’s talents in all their diversity and our unique offering, we are more confident than ever in our ability to support our clients in their transformation, in a constantly evolving world.”

 

Lévy is credited with the idea of switching to the new governance setup.

 

As expected, Élisabeth Badinter, vice chair of the previous supervisory board, has been named vice chair of the new board (she is the daughter of Publicis Groupe Marcel Bleustein-Blanchet).

 

All other resolutions made at the annual meeting were also approved by shareholders.  

16528: Publicis Groupe Feels The Pain Of Opioid Addiction And Advertising.

MediaPost reported Publicis Health agreed to a $350 million national settlement with all 50 State Attorneys General, the District of Columbia, and certain U.S. territories, stemming from stuff produced for opioid manufacturers by former White advertising agency Rosetta. Given the painful drama experienced at Rosetta, it’s possible that many employees were not just working for opioids—but working while on opioids too.

 

Expect another lame video where Publicis Groupe Chairman and CEO Arthur Sadoun tells staffers that the legal loot losses will be offset by amazing innovations generated via AI and Marcel.

 

Oh, and the settlement figure is roughly 7x the crumby amount earmarked for DEIBA+ performative PR and heat shields from the White holding company.

 

Publicis Health Settles Opioid-Related Legal Dispute For $350 Million

 

By Steve McClellan

 

Publicis Health has entered into a $350 million national settlement with all 50 State Attorneys General, the District of Columbia, and certain U.S. territories related to past work undertaken for opioid manufacturers primarily by former advertising agency Rosetta.

 

The settlement brings to a close a legal dispute after almost three years of pre-trial maneuvering in Massachusetts and national settlement discussions.

 

In May 2021, the Massachusetts Attorney General sued Publicis Health alleging it contributed to the nation’s opioid health crisis with marketing work it did for opioid manufacturer Purdue Pharma. The state alleged the work included “unfair and deceptive marketing schemes,” among other charges.

 

Publicis said at the time and reiterated today that it did not engage in any wrongdoing related to its work for opioid manufacturers.

 

Massachusetts will receive nearly $8 million from the settlement to help address the opioid crisis.

 

The settlement will fund the state’s Opioid Recovery and Remediation Fund to provide support for opioid use disorder prevention, treatment and recovery. The settlement outlines the amount that the other states and territories will receive.

 

As part of the settlement, Massachusetts said the company will “disclose on a public website thousands of internal documents detailing its work for opioid companies and will stop accepting client work related to opioid or other opioid-based Schedule II or Schedule III controlled substances.”

 

In the legal dispute with Publicis, Massachusetts served on the executive committee of a multistate investigation, along with the attorneys general of California, Colorado, Connecticut, Idaho, New York, North Carolina, Oregon, Tennessee, and Vermont. “They are joined in this multistate settlement by the attorneys general from all states, territories, and the District of Columbia.”

 

To date, Massachusetts said it has reached legal settlements with opioid manufacturers and others that will return more than $1 billion to the state and local communities.

 

“For years, Publicis Health’s marketing schemes helped fuel the nationwide opioid crisis, which has shattered some of our most vulnerable communities, while creating significant financial strain on our state systems,” said Massachusetts Attorney General Andrea Joy Campbell.

 

Publicis Health issued the following statement:

 

“After three years of discussions, this settlement brings the matter to a close with a net payment of €148 million. The full settlement amount should quickly and directly contribute to the States’ opioid relief effort.”

 

“This settlement, in which the Attorneys General recognized Publicis Health’s ‘good faith and responsible corporate citizenship’, is in no way an admission of wrongdoing or liability. We will, if need be, defend ourselves against any litigation that this agreement does not resolve.”

 

“The work for pharmaceutical companies addressed by this settlement was at all times fully compliant with the law. It was undertaken primarily by Rosetta, a small agency shuttered ten years ago, that was already working with pharmaceutical clients that manufactured opioid medication when it was acquired thirteen years ago in 2011. Its work related to these products was used solely with healthcare providers, not consumers, using communication tools and language expressly approved by the FDA. Rosetta’s role was limited to performing many of the standard advertising services that agencies provide to their clients, for products that are to this day prescribed to patients, covered by major private insurers, Medicare, and authorized by State Pharmacy Boards.

 

“We recognize the broader context in which that lawful work took place. The fight against the opioid crisis in the United States requires collaboration across industries, lawmakers, and communities, and we are committed to playing our part. That is why we worked to reach this agreement, and why we are also reaffirming our long-standing decision to turn down any future opioid-related projects.”

15633: Inventing More Reasons To Hate Working At Publicis Groupe.

Advertising Age reported Publicis Groupe hatched a new initiative—Work Your World—that will allow employees to toil from anywhere on the planet for up to six weeks. The scheme also presents an opportunity for the White holding company to try justifying its wasteful investment in Marcel, the amazing AI doodad designed to organize the global workforce. If Publicis peons are invited to choose their area of employment, how many will quietly vote for WPP, Omnicom or IPG? Look for Work Your World search terms to include: Anyplace Far Away From Maurice Lévy.

 

Publicis Groupe Allows Employees To Work From Anywhere In The World For Up To Six Weeks

 

The holding company’s ‘Work Your World’ initiative is designed as retention tool for talent

 

By Brian Bonilla

 

Publicis Groupe employees will now have the chance to work from practically anywhere in the world.

 

Today the holding company unveils its “Work Your World” initiative, which it is calling a global employee-first experience launching in January. Through the program, Publicis employees who have been with the company for at least a year will be able to work from any accessible country where the company is present for up to six weeks annually. Employees will have access to work in over 100 countries.

 

Arthur Sadoun, CEO of Publicis Groupe, said the company has seen the need for flexibility like this after conducting numerous surveys regarding what employees expect from their workplace given the past two years and the impact of COVID-19.

 

“We have realized that flexibility is a necessity because you have to adapt to this hybrid world, but adapting is not enough,” Sadoun said. “Ninety-five percent of our people are actually interested in leveraging remote work to experience it from another city or country.”

 

In a video shared today across all 85,000 Publicis staff, Sadoun and Carla Serrano, chief strategy officer of Publicis Groupe and chief strategy officer of Publicis New York described the thought process behind this new initiative and how it works.

 

Through Marcel, the company's heavily touted AI staffing solution platform, employees will be able to pick a destination and view the health and safety health guidelines for that destination, along with important details such as the time difference between the destination and where the employee’s current team is based. Employees will also be able to chat with colleagues from that destination who can share more information about the country.

 

The program includes a “Home Swap Home” feature that Serrano likens in the video to an “internal and expanded Airbnb just for our people.” Using this feature, employees will be able to rent, host, or swap accommodations with work colleagues around the world, view pictures of a home and speak to their colleagues before making a decision. Employees will also be able to post videos and pictures about their experience in their new location.

 

While the timing might seem tricky given the emergence of the new omicron variant, Sadoun says the holding company will adapt as needed.

 

“We thought a lot about whether this was the right moment to launch an initiative like this given the emergence of another new variant and we realized that actually the right moment doesn’t exist as we will be living with this virus for a while,” Sadoun said in the video to his employees. “But we can’t afford to wait any longer to give you new opportunities to grow, explore, and experience fresh perspectives, even as we adapt to what is coming next. So to be clear, ‘Work Your World’ might be postponed for a few months next year if things get worse. But what won’t pause is our commitment to making sure that every one of you has the possibility to progress in this hybrid world we are living in.”

 

The holding company is currently leaving work policies up to local and national mandates. Its U.S offices are currently open and people are allowed to come in on an optional basis.

 

Sylvie Ouziel, CEO of shared platforms at Publicis, has been spearheading this effort since she joined in June, and she will be in charge of the program, as she is with Marcel.

 

The same way Marcel can be used to find the right talent for a project; which employees would be best for certain surveys; or even to recommend potential lunch partners for employees when they are in the office, the platform can be used to match employees with other employees or offices that best match their destination interests, Ouziel said.

 

While the company won’t be paying for employee flights, employees will be able to align their time in other countries with holidays or business trips. Employees will also have access to a 24-hour call center where they will be able to get in contact with an actual person to answer questions around visa obligations and work authorization paperwork necessary for working in a particular country. Marcel will also provide emergency COVID alerts for the country and if a health accident occurs, Publicis will help pay for treatment if needed, Ouziel said.

 

In an industry that has struggled to attract and maintain talent, especially in an environment where employees have relocated during the pandemic, Publicis believes the program will give the holding company a leg up.

 

“We think it will become a competitive advantage that’s unique to Publicis because we’re the only people that can do something like this, especially with the experience because of Marcel,” Serrano said.

 

“Our first priority is retaining our talent right now. What we’re seeing is our talent is relocating instinctively and this is us opening up that experience even more and giving them the freedom to connect. People’s lives have become kind of small. So if we can give them that experience of expansion and openness we think it’s absolutely a reason to stay and, and continue to grow and learn and be happy here. people talk about the future of work and, and we really think this one is much more future-ready.”

 

Sadoun will share more details about the program during an internal virtual seminar called “Viva La Difference,” taking place next week.

15432: Does Publicis Groupe Think AI Is More Important Than AAs?

 

When Publicis Groupe needed to finance the production of Marcel, they instituted a year-long ban on awards—effectively nixing engagement with Cannes Lions International Festival of Creativity. Yet when Cannes Lions’ diversity issues were exposed, the oh-so-progressive White holding company responded with mime-like silence.

 

15417: Publicis Health Feeling The Pain Of Promoting Opioids…?

 

Advertising Age reported Massachusetts filed a lawsuit against Publicis Health, charging the pharmaceutical marketing agency with igniting the opioid crisis in the state via advertising created for Purdue Pharma, a client that promotes and produces OxyContin. “Publicis convinced doctors to prescribe more OxyContin to more patients as the opioid epidemic was raging,” stated State Attorney General Maura Healey. “As a result, patients in Massachusetts suffered, overdosed, and died, while Publicis collected tens of millions of dollars.” A Publicis Health spokesperson countered, “This lawsuit is completely without basis. All of our work was completely lawful. Publicis Health acted solely as an advertising agency. It was not a drug manufacturer, distributor, or consultant. Our role was limited to implementing Purdue’s advertising plan and buying media space.” Okay, but it’s a safe bet Publicis Health monitored its work—and likely used success metrics to convince the client that the campaigns were effective. Plus, Publicis Groupe is probably using Marcel to assemble the top legal experts in the White holding company’s network for the defense.

 

Massachusetts Sues Publicis Health, Alleging It ‘Fueled’ Opioid Crisis In State Through Its Work For Purdue Pharma

 

Here are some of the specific marketing strategies cited in the suit, for which it claims the agency was paid $50 million

 

By Brian Bonilla

 

The state of Massachusetts has filed a lawsuit against Publicis Groupe’s Publicis Health for its work with Purdue Pharma from 2010-2019, alleging it knowingly deployed “unfair and deceptive marketing schemes,” the suit claims, to help Purdue sell more OxyContin, in turn “fueling” the ongoing opioid crisis around the U.S.

 

According to the suit, during the nine-year span Purdue paid Publicis more than $50 million for marketing that State Attorney General Maura Healey alleges created a “public nuisance of opioid use disorder.” Healey’s lawsuit seeks civil penalties and restitution to victims in the state.

 

“Publicis convinced doctors to prescribe more OxyContin to more patients as the opioid epidemic was raging,” Healey said in a statement. “As a result, patients in Massachusetts suffered, overdosed, and died, while Publicis collected tens of millions of dollars.”

 

Purdue declined to comment. Publicis Health vigorously denies the allegations.

 

“This lawsuit is completely without basis,” a spokesman wrote in a statement. “All of our work was completely lawful. Publicis Health acted solely as an advertising agency. It was not a drug manufacturer, distributor, or consultant. Our role was limited to implementing Purdue’s advertising plan and buying media space.”

 

“The complaint does not identify a single statement made by Publicis Health as false, but instead relies on broad unfounded conclusions and a flawed public nuisance theory,” the spokesman continued. “Finally, it ignores the statute of limitations, which bars these claims.”

 

The spokesman went on to say that the complaint “cherrypicks unrelated statements” made through the course of its multi-year engagement with Purdue, taking conversations “out of context” to create a “completely false and misleading narrative.”

 

Among some of the specific allegations cited in the 68-page suit:

 

A 2015 email conversation cited in the lawsuit is claimed to have been exchanged among Christina Ceniza, Linda Ketchum-Pompili, and Bruce Rinderman, who are identified in the suit as Publicis staff. The email, it says, regards a crush-resistant formulation of OxyContin that the team was planning to market using a survey that found it reduced opioid use disorder. But then, the suit claims, Rinderman noticed the results actually showed the opposite. According to the suit, he brought it to Ceniza’s attention and she replied:

 

“Ugh – no you’re right. I was trying to figure out if maybe the % of OXC to overall illicit use of pain killers went down, but it didn’t. … Even if we can’t find the data, we can craft the message and tell the brand team what we WANT to say and see if their Medical Services group can come up with anything to support it?”

 

In another instance, the lawsuit claims that in 2016 Publicis worked with Purdue’s marketing team to script a training video of a model sales rep named “Ken” that Purdue’s reps around the country were supposed to emulate. In the video, Ken was scripted to “downplay” the risks of patients becoming addicted to OxyContin and “assure doctors that they were manageable,” the suit claims.

 

The lawsuit also states while knowing that “none of Purdue’s opioids were approved to treat specific diseases,” Publicis developed and implemented “Condition Campaigns” which the lawsuit claims were designed to direct prescribers searching online about diseases typically not associated with opioid remedies, such as low back pain and cancer pain, to Purdue’s opioid site.

 

Publicis also “humanized Purdue and its opioids” by creating “patient vignettes,” the lawsuit claims. The vignettes were designed to get doctors to “more easily recognize patients” who could be started on OxyContin and continually be prescribed higher doses over time. The lawsuit claims Publicis created a a vignette named “James, age 40” to “include a younger demographic.” James had his dose increased from 10 mg to 15 mg to 20 mg in a period of just three weeks, according to the lawsuit.

 

“Publicis facilitated the delivery of patient vignettes like James to prescribers, together with savings card information, to increase new prescriptions and keep patients on OxyContin for longer, using a special URL to track how many prescribers accessed the savings cards and measure the project’s effectiveness,” the lawsuit stated.

 

In March, Purdue filed a bankruptcy plan to resolve thousands of opioid lawsuits by restructuring the company into an entity that would steer profits to opioid victims, and require members of the Sackler family, who own the company, to contribute nearly $4.3 billion, as reported by Reuters.

 

Publicis Health isn’t the first company associated with Purdue to be sued. In February 2021, Purdue consultant McKinsey & Company agreed to pay $641 million to resolve lawsuits by all 50 U.S. states, Washington, D.C., and five U.S. territories over its role in the opioid epidemic.

 

In 2020, electronic medical records company, Practice Fusion, agreed to pay the government $145 million as part of a settlement in which the company admitted to soliciting and receiving kickbacks from Purdue in exchange for using the tech company’s software to “influence physician prescribing of opioid medications,” according to a statement by the Department of Justice.

15240: Publicis Goofe Shows $4 Billion Won’t Buy You Basic Intelligence.

AgencySpy posted about the Publicis Groupe virtual event—hosted over Marcel—that was shut down by a Google outage. So, after spending roughly $4 billion on digital acquisitions and a digital doodad, the French holding company experienced IT impotence. Perfect. Publicis Groupe drones should certainly keep this in mind as the inevitable layoffs commence in the weeks ahead.

 

Publicis Event With Michelle Obama Postponed by Google Outage

 

By Erik Oster

 

Publicis was set for a big day today, with a virtual seminar headlined by Michelle Obama.

 

Everything was about set to go when YouTube, which Publicis was utilizing as a live video platform for the event hosted over Marcel, suddenly went down this morning as part of a larger Google outage.

 

Publicis CEO Arthur Sadoun explained the issue and resulting postponement with a lighthearted video which also references the recent end-of-year with former CEO ­Maurice Lévy.

 

Sadoun was not shy about his frustration with the latest thing to go wrong in 2020 and joked about what it said about clients and Publicis alike needing to decrease their reliance on platforms.

 

While Google was quickly back online today, Sadoun explained that they made the difficult decision to postpone out of concern that anyone might not be able to watch the seminar live.

 

He outlined the seminar sessions for the rest of the week, starting tomorrow with a session featuring Michelle Obama, which will address Publicis’ DEI agenda and vision for 2021, one Wednesday featuring Bob Iger about “Winning in a Platform World” and concluding Thursday with a session dedicated to “The Future of Work” featuring Satya Nadella.