ITV shareholders want new chief in return for rights issue

ITV shareholders are hoping to see the appointment of a chief executive in return for pumping more equity in to the struggling broadcaster.

ITV is thought to be discussing raising money through a share issue following its poor annual results announcement last week – which saw ITV lose a total of £2.7 billion after a huge downward realignment of its asset valuation (see Can ITV survive in the short-term?).

Investors are expected to support a rights issue but in return, want executive chairman Michael Grade to bring in a new chief executive to take over the running of the business, according to a report in the Daily Mail.

The report suggests that two internal candidates will be considered for the role, which would force Grade to take a step back – chief operating officer John Creswell and Rupert Howell, managing director of brand and commercial and former European director of McCann Erickson.

ITV is also thought to be amending its performance share plan for its top 130 workers, following the broadcaster’s decision to freeze the pay of all staff earning more than £60,000 last month.

The new three-year plan could see Grade, Cresswell and group finance director Ian Griffiths receive a £2 million payout in company shares.

However, the maximum amount payable has been cut from 150% of salary to 100%.

ITV’s last incentive plan was also paid in shares and was hit by the dramatic decline in their value over recent years.