ITV To Announce Appointment Of New Chairman Next Week
ITV looks likely to announce the appointment of a new chairman as early as next week after reducing the shortlist of names being considered for the high-profile position to just two.
It is understood that the nominations committee led by Sir Brian Pitman has whittled the shortlist down to John Gardiner and Peter Burt, both of whom have strong links to the City and the ITV plc board of directors.
The newly merged broadcaster, which has been valued at more than £6 billion, is expected to announce the appointment of the favoured candidate before the publication of its financial results on 3 March.
According to the Gaurdian, the nominations committee will consult leading investors before the decision is revealed. Last year shareholder dissatisfaction led to the ousting of Michael Green as ITV chairman designate following the merger of Carlton and Granada (see Green Looks Set To Go As Granada Withholds Support).
ITV has been keen to avoid candidates heavily involved in politics because of the regulatory and political lobbying tasks that are currently high on the broadcaster’s agenda. Instead, shareholders are pressing for the appointment of a senior business figure who has performed and developed a relationship in the City.
Both candidates fulfil this requirement having led successful FTSE 100 firms and neither is overtly political, a criterion which is understood to have ruled out former Vodafone chief executive, Sir Christopher Gent earlier this month (see Gent Declares Interest In Becoming ITV Chairman).
Gardiner benefits from having chaired Tesco during a six year growth spurt when it over took Sainsbury’s as British market leader. He is due to step down as non-executive chairman of the retailer next month after 16 years on the board.
Meanwhile, Burt is a career banker who rose to the top of the Bank of Scotland. He became deputy chairman of the group following its merger with rival Halifax in 2001 and won plaudits from shareholders for his stewardship of the bank.
Reports suggest that shareholders are also lining up alternatives for the role of chief executive in the event that Charles Allen fails to impress. Allen did not receive a strong show of support from investors when Green was ousted and it is understood that he has been given a stay of execution to see the merger through.
The broadcaster is facing considerable integration challenges after the completion of the long-awaited merger of Carlton and Granada, which is intended to allow it to create a leaner structure, with lower costs and a more focused approach.
It is expected that the merged ITV company will benefit from cost savings of around £100 million. Some analysts predict this figure could be even higher and Merrill Lynch believes that even greater synergies could be found if it were to buy up the remaining five ITV licensees (see ITV Enters New Phase With Merger Completion).
ITV: 020 7843 8000 www.itv.com
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