British broadcaster ITV announces new chairman

ITV, the struggling British commercial television network, said yesterday that it had appointed former lawmaker Archie Norman as its new chairman, sending its share price higher.

Mr Norman, who has served as an MP for the Conservative Party and as chief executive for Wal-Mart-owned British supermarket group Asda, will replace outgoing ITV chief executive and chairman Michael Grade in January.

ITV said it would pay Norman £300,000 a year (€338,000) as well as £636,000 worth of shares over three years.

Reacting to the announcements, investors pushed ITV's share price up 4.4 per cent to 54.26 pence in early London trading.

"The news that ITV's embarrassing search for leadership is half over will reassure jittery shareholders and the city in general," said ETX Capital senior trader Manoj Ladwa.

"Archie Norman is a big enough name with a good track record. Now they just need to find a chief executive to work with him after John Cresswell's caretaker stint ends."

ITV struggled to find a new chairman to head the loss-making group, while last month it said the broadcaster's chief operating officer John Cresswell would become temporary chief executive officer when Grade steps down next year.

"We are delighted that Archie is to become the next chairman of ITV," head of the television group's nomination committee, James Crosby, said in a company statement released yesterday.

Mr Norman described the task ahead as "an irresistible challenge" as ITV faces "an imperative for change" and the task "of adapting to compete in a fragmented digital media world".

ITV, which broadcasts Britain's popular music talent show X Factor - suffered a net loss of £2.55 billion (€2.89 billion) in 2008-2009 on declining advertising revenue amid the recession, leading to 600 job cuts.