The lobbying firm co-founded by Peter Mandelson has cut all ties with the former US ambassador and announced the departure of its boss Benjamin Wegg-Prosser.
Global Counsel said Lord Mandelson no longer has a stake in the business nor any influence over it.
Co-founder and chief executive Mr Wegg-Prosser said he was stepping down as it was “time to draw a line” between the firm and the “actions” of Lord Mandelson.
The business had been coming under pressure over its association with Lord Mandelson and his relationship with paedophile financier Jeffrey Epstein.
Global Counsel said in a statement that it had reached an agreement to fully divest the peer’s shares in the company, therefore ending any connections with him.
Its chairman, Archie Norman, said: “With the completion of this process today, Peter Mandelson no longer has any shareholding, role or association with Global Counsel and has no influence over the firm in any capacity.”
Mr Wegg-Prosser said: “With the completion of the divestment of Peter Mandelson’s stake in the business, I feel that now is the time to draw a line between Global Counsel and his actions.”
He has been replaced as head of the firm by its managing director Rebecca Park.
Lord Mandelson co-founded the London-based firm with Mr Wegg-Prosser in 2010 after Labour lost the general election.
It is understood that Barclays has cut ties with Global Counsel amid the scrutiny.
