Investor Backlash Could Force ITV Directors Out
ITV shareholders look set to express their outrage later today at three Carlton directors who authorised the controversial £15 million in payments to the broadcaster’s ousted chairman designate, Michael Green.
Reports suggest that up to 40% of shareholders in the newly merged company could vote against the re-election of the directors who approved the package that saw Green receive £13.2 million in shares and £1.8 million in cash.
Rebel shareholders are unlikely to gain the 51% majority needed to block the re-election of Brian Pitman, John McGrath and Etienne de Villiers to the ITV board. However, a significant protest could hasten their departure from the company.
Green was ousted as chairman designate of ITV last October by an influential group of institutional investors. However, details of his pay-off and a further £12 million of payments to other former executives only emerged last month to the fury of shareholders (see Green Looks Set To Go As Granada Withholds Support).
Brian Pitman, the most senior former Carlton director, visited shareholders to explain why the broadcaster approved the payment, which he claimed was compensation for loss of office and was far less than he was entitled to under the terms of his implied contract (see Former Carlton Directors Could Be Ousted From ITV Board).
Sources close to Carlton claimed at the time that Green, who had no official contract with the broadcaster, would have taken legal action against the merged entity to recover the money had it not been paid.
ITV’s recently appointed chief executive, Sir Peter Burt, who eventually replaced Green, looks set to face difficult questions about the payments at the company’s first annual general meeting since the completion of Carlton and Granada’s multi-billion merger earlier this year (see ITV Enters New Phase With Merger Completion).
He is also likely to be asked about a meeting held with former BBC director general, Greg Dyke. Reports last week claimed that Burt offered Dyke the ITV chief executive’s job, in a move that rekindled speculation about the future of present incumbent Charles Allen (see Dyke In Talks To Take Top Job At ITV).
Allen’s position has been in doubt since Green was ousted as chairman designate and many thought he had been given a stay of execution to see the merger through. However, Burt recently insisted he had no intention of attempting to oust his second in command (see New ITV Boss Claims Allen Is Safe As Chief Executive).
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