City cheers ITV's 'big hitter' chairman pick

Published on Wednesday 18 November 2009 20:26

THE leadership vacuum at troubled broadcaster ITV has been resolved with the appointment of "big hitter" Archie Norman, writes Erikka Askeland.

The choice of the former chief executive of Asda and Tory MP was yesterday cheered by media specialists and the City, putting to rest ITV's "embarrassing" problem of finding a replacement for executive chairman Michael Grade, who announced he was leaving his dual role in April.

The broadcaster has failed to appoint a new chairman at least twice in recent months. In October, it was reported that Sir Crispin Davis, the former chief executive of Reed Elsevier, ended talks over taking the chairmanship. ITV was in discussions with others, including Sir Michael Bishop, the former BMI chairman, who also turned the job down.

Norman, the UK's only ever FTSE 100 chairman to have sat in the House of Commons, was praised as a great choice for both his business acumen and his political connections.

Alex de Groote, media analyst at Panmure Gordon, said: "He's a big hitter. He comes with a great track record, a good CV and FTSE 100 experience.

"And, lets be blunt, he's a Tory. He will be pretty au fait with the thrust of policy coming out of the Tories post the next elections, specifically in media."

Analysts also predicted that Norman's appointment would add scope to the broadcaster's search for a chief executive. ITV's hunt for an executive boss hit the buffers when former head of BSkyB Tony Ball walked away from negotiations on pay in September. Chief operating officer John Cresswell has already agreed to become ITV's interim chief executive in January, although he will leave the firm when a permanent chief executive is appointed. ITV has been without a designated chief executive since Charles Allen left in late 2006.

De Groote said Norman's status would ease the pressure for landing another big hitter, who will probably be recruited from the industry.

"It means a lot to have management of that calibre. Then you don't need quite such a punchy chief executive."

Another analyst said: "This opens up the CEO process. You can't rule anyone out now."