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Australia and New Zealand is WPP’s fifth largest market as Sorrell pockets $83m

WPP biggest marketsWPP’s Australian and New Zealand agencies chipped in $1.5bn in revenues to the company last year making it the fifth largest market for the world’s biggest advertising holding group.

In its annual report the group also revealed founder and chief executive Sir Martin Sorrell took home $83.5m from the company, a 44 per cent increase on the previous year, with the bulk of that made up of $70m worth of shares he was handed in March. He had a base salary of $2.9m and short-term incentive payments of $7m.

In Australia WPP owns agencies including MEC, Mediacom, JWT, George Patterson Y&R and Mindshare. 

The US was the single biggest contributor with $7.8bn, ahead of the UK with $4bn, Greater China with $1.9bn and Germany with US$1.7bn, as the company reported revenues of $22.4bn globally, up 4.6 per cent on the prior year.

In its predictions the company also took a swipe at the failed Omnicom and Publicis merger, which fell over last year, saying: “Despite the failure of one or two recent high-profile megamergers, particularly the so-called mergers of equals, we expect consolidation to continue – among clients, media owners and marketing services agencies.

“Bigger companies will have the advantages of scale, technology and investment, while those that remain small will have flexibility and a more entrepreneurial spirit on their side.”

It also notes speculation about a potential merger between IPG Mediabrands and Havas, although it points out Havas is “already effectively consolidated” because its owners also own a media company, Vivendi.

Sorrell’s position as one of the most prominent figures in global advertising was also highlighted in the report from group chairman Philip Loader, who wrote: “Few would deny a certain ‘Sorrellcentricity’ to the Group; pronounced even among founders.

“This CEO, at heart and in practice, acts as an owner-entrepreneur, within the governance requirements of public ownership. Without excess, there is merit to this approach. Indeed, several years ago, the editor of Fortune’s list of The World’s Most Admired Companies noted that ‘one-man phenomena’ accounted for seven of the list’s top 10.”

Alex Hayes

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