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ITV came under renewed pressure today to appoint a chief executive, amid reports of a boardroom split over a bumper multi-million pound incentive scheme for the leading candidate.
Tony Ball, the former head of Sky, has been in talks with Britain's largest commercial free-to-air broadcaster over replacing executive chairman Michael Grade.
But sources close to the deal say it is up in the air' as the channel's board of directors - including the chair of the board's remuneration committee, Baroness Prashar - have failed to concur over the terms of his appointment.
The dispute is believed to hinge on the package that has been put forward, which includes a series of incentives should he turn around ITV's ailing fortunes.
City sources claim that Ball, 53, who was Britain's highest paid television executive whilst in charge of Sky, has offered to put up some his own money into ITV.
The deal could lead to Ball receiving a bumpe r payout of up to £20 million, should he get ITV's share price back up.
The headline figure is said to have concerned board members and some of ITV's shareholders, some of whom were sounded out' about Ball's bid to be the next ITV boss earlier this year.
A City source said: “The size of the possible payout has not gone down well with the City.
“ITV positions itself as the home of mass entertainment and programming that ordinary people can relate to with shows such as Coronation Street - so the integrity of the brand doesn't sit well with big money deals.”
ITV's shareholders include Legal & General, Aviva, Fidelity and American investment firm Brandes.
The pressure remains on ITV to make an announcement.
ITV's shares have dropped by ten per cent - closing at 48p last night - over the past week as uncertainty surrounds the future leadership of the corporation.
A media industry source told the Standard: “At one point it looked inevitable that Ball would join but now it seems up in the air. The board are not seeing eye to eye.
"One the one hand there are those who feel that Tony Ball is the best possible man for the job, given his track record and so he hould be given whatever incentives he needs. But others feel it is a time for austerity at ITV and that should start at the top.”
Amongst those voices is Baroness Prashar, a non-executive member of the ITV board a veteran of several public sector and charitable bodies.
A friend of Baroness Prashar told the Standard: “If there is talk of the new ITV boss taking a pay cut to reflect the current climate and issues facing the corporation, I would not be surprised if Usha Prashar would be driving that agenda.
"She is from the public sector and will approach the issue differently from the more City-focused commercially-minded figures on the board.”
Ball's appointment - should it go through - is expected to trigger a host of big name departures at ITV.
Amongst those rumoured to be leaving are director of television Peter Fincham - who has been tipped to replace Andy Duncan who resigned as Channel 4 chief executive yesterday.
Speculation also surrounds the future of ITV chief operating officer John Cresswell and commercial director Rupert Howell- both of whome were tipped at one point to take over from Grade.
An ITV spokesman declined to comment directly but said the The process is ongoing. We are hoping to appoint someone by the end of the year.”
Baroness Prashar and Tony Ball were both unavailable for comment.
Reader views (2)
Why don't they go for Mark Thompson from the BEEB? He told us yesterday that he was worth a lot more than he was being paid amd would therefore not be embarrassed by lots of dosh being thrown at him. This would solve two problems, ITV needs the man and the BBC needs to get rid, no severance pay no incentives to go.
- Colin Macpherson, Gramat France, 17/09/2009 16:48
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And the government want to top slice the licence fee to give ITV more money to pay for their programmes which they say they can't afford. Mandelson wants to bar the Phoenix Four for taking high salaries, they didn't get £20 million. The share price will go up when someone is appointed, as the market have already discounted it, in order to make a killing when they drive the price in the other direction, so why link his remuneration to share price? As has been previously stated, if, because you are paying high salaries, you claim you can't afford to run something, you cut the high salaries, but you certainly don't ask for Joe public to bail you out whilst still paying people to Lord it over the plebs. Shades of the bankers, little bloke earnig £14k bails out an organisation that pays its staff £millions.
- Alan, carlisle uk, 17/09/2009 15:48
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