BARCELONA, Nov 19 (Reuters) - WPP Chief ExecutiveMartin Sorrell said on Wednesday he would like, as a largeshareholder, to see the payout ratio for the advertising group'sdividend increase to 50 percent from the current target of 45percent.
Speaking at the Morgan Stanley Tech, Media and Telecomsconference, Sorrell said the board would discuss a new target of50 percent if it hits its target for this year of 45 percent.
"We have said that we will try to get to 45 percent pay outratio this year, that will probably happen, and then the boardwill have to sit down and decide whether they will go beyond 45percent.
"From my point of view as a significant shareholder in WPP,with most of my net worth being tied up in the company,personally I would like to see an increase to 50 percent butwhether that carries the board or not is another case."
He said going above that did not make sense.
WPP in 2013 had a dividend pay-out ratio of 42 percent ofheadline diluted earnings per share.
Sorrell also said he expected to see further consolidationin the advertising sector, perhaps around smaller rivals Havas and IPG, after a bigger deal between Omnicom and Publicis fell apart.
"In the agency space, I think you will see consolidation aswell," he said. "There are basically six network. I doubt thatin a few years time the situation will be as it is today."
(Reporting by Leila Abboud, writing by Kate Holton; editing byPaul Sandle)
WPP (WPP)
