Morning:
8°c
ITV was plunged into a leadership crisis today as the former Sky boss lined up to take over was rejected after he demanded a £42 million pay deal.
In a shock announcement it was also revealed that Michael Grade, current company executive chairman, will be leaving, apparently having lost his battle to stay as a part-time chairman. He is now expected to walk away with a large six-figure pay-off.
In a statement to the Stock Exchange today, ITV said Tony Ball, the highly respected former boss of Sky, will now not take up the job of chief executive.
At issue has been Mr Ball's demands for the £42 million pay-and-incentives deal over five years and further demands that he choose the next non-executive part-time chairman.
ITV had lined up Mr Ball to take over the executive reins from Mr Grade in the summer. But in the fall-out of Mr Ball's refusal to agree terms, it appears Mr Grade has no future at ITV either. Mr Ball had accepted an informal offer but the deal was not sealed as it emerged he was unhappy with the terms offered.
What followed was an unseemly pay negotiation, some of which was conducted in the press as “friends” of Mr Ball claimed ITV was not making an offer that reflected adequately his experience and expertise.
The extent to which he wanted a role in negotiations for the appointment of a chairman has also emerged. It is understood he refused to continue any negotiations after it became plain the board wanted someone with whom he believed he could not work.
The issue has split ITV shareholders who either believed Mr Ball was trying it on too much or that he might be worth every penny.
The extraordinary twist in the soap opera puts the focus on the ITV part-time director who has been handling the negotiations — Sir James Crosby, the reputation-damaged former boss of Halifax banking group HBOS.
In its statement, ITV said: “The Board of ITV has terminated its discussions with Tony Ball. [The board] has negotiated exhaustively with Mr Ball, and throughout has been fully cognisant of, and responsive to, the views of its shareholders.
“The process of negotiation and discussion has highlighted a number of substantial differences, including a failure to finally agree contractual arrangements, together with a dis-agreement over the future chairmanship.” As a result of that, it said, his appointment “would not be in the best interests of the company”.
ITV said “the search process for a new chairman is well advanced and discussions are ongoing with a number of external candidates”. It said the new chairman's first job would be to lead the search for a chief executive.
