ITV LOSES ITS X-FACTOR
ITV’s epic search for new leadership hit a fresh low yesterday after Sir Michael Bishop ruled himself out of the running for chairman.
And chief operating officer John Cresswell – who was yesterday appointed interim chief executive – said he would leave as soon as the role was filled permanently, ending ITV’s best chance of appointing an internal candidate.
Bishop walked away because he believes that the job of restructuring ITV’s board and placating its conflicting investors would take up too much of his time.
Enders analyst Toby Syfret said it would be “extraordinarily difficult” for whoever does take the reins at ITV.
“I sense that a lot of what has gone wrong is a feeling of tension between shareholders and the board,” he said. “From the perspective of its shareholders, ITV has certainly lost the X-Factor.”
BMI founder and ex-Channel 4 chairman Bishop had been the favourite for the chairmanship after ex-Reed Elsevier chief executive Sir Crispin Davis ruled himself out last week.
Bishop’s retreat has dealt a powerful blow to ITV’s succession plans at a time when the struggling broadcaster is crying out for strong leadership to steer it through an advertising downturn and into the digital future.
The disastrous process began in April when executive chairman Michael Grade said he would step back from the chief executive role once a replacement was found.
And the broadcaster’s woes worsened last month when Grade signalled his intention to leave the board as well.
HMV boss Simon Fox was initially tipped as the board’s favourite for chief executive, until he said in August that he intended to stay with the entertainment retailer.
And former Sky boss Tony Ball was in advanced negotiations with ITV over the role, but walked away last month when the parties could not agree terms.
Ball was said to be demanding a pay package of £30m, but sources close to the ex-Sky boss blamed an ITV ultimatum over their choice of Sir Crispin Davis as chairman.
There has been talk that Ball could return to negotiations now that Davis and Bishop have ruled themselves out as possible chairmen.
The City was yesterday left to mull over who ITV would approach next for both roles.
Stockbroker BGC Partners had ex-Channel 4 chairman Vanni Treves and GlaxoSmithKline chairman Sir Christopher Gent as its favourites for the chairman job.
Despite the setback, ITV shares rose two per cent to 47.33p yesterday after Goldman Sachs upgraded the stock to “buy”, citing signs of improvement in the advertising market.