To understand the ramifications of the investigation by the Association of National Advertisers into “non-transparent” practices by agencies, one has go back 30 years to 1986, at the start of the agency arms race. Needham Harper Worldwide, BBDO International and Doyle Dane Bernbach merged to create Omnicom Group, the largest advertising company in the world. Saatchi & Saatchi, previously No. 1, countered by buying Ted Bates Worldwide, thus becoming the world’s largest agency again.

Bates was headed by a combative CEO named Bob Jacoby. The Saatchis signed Jacoby to a five-year contract to continue as Bates CEO but, within a few months they humiliatingly replaced him with his longtime aide and friend, whom Jacoby had demoted to an administrative position only two weeks earlier. Jacoby sued, and the trial revealed some stunning details: It turned out that Jacoby’s personal loot from the sale was $100 million and that the overall sale price was $450 million!

Read the full Forbes article here.