Ann Fudge out at Y&R after embattled brief reign.

Ann Fudge, who became one of the most attacked and controversial advertising leaders on Madison Avenue, while heading Young & Rubicam, has “chosen to retire” before December 31, 2006, according to a company announcement.

Fudge’s arrival from Kraft Foods at Y&R succeeding Michael Dolan three years ago, as Chairman-CEO, quickly made headlines for becoming the top ranking African-American woman in one of the largest global ad and marketing brands. However, her performance, according to Advertising Age, was underwhelming with publications like Business Week giving it abundant coverage.

On her second year at Y&R Brands the WPP-owned company began to experience major business losses, among them Sony Electronics and Ford Motor Company’s Jaguar. By then, the media trades started to expose aspects of her management style that some called arrogant and a major advertising publication asked for her resignation on a strong editorial.

An exodus of Y&R leaders ensued under this period and on the Hispanic front, Y&R’s The Bravo Group saw the resignation of its well-known leader, Daisy Expósito-Ulla. Two months after Expósito-Ulla’s departure Fudge brought in Gary Bassell. His brief tenure was marred by personnel defection and in less than two years ended abruptly.

Bravo is now headed by ad veteran Eddie González, who has opted for stabilization and consolidation of assets under Y&R rather than the stand-alone status enjoyed by the U.S. Hispanic market ad giant in its heyday.

Earlier this year, Hamish McLennan took over Y&R’s CEO position. Fudge indicated she intends to dedicate more time to non-profit efforts.