ITV chief is paid £1.93m as price of shares falls

Mar 29 2008 by Peter McCusker, The Journal

ITV chief Michael Grade earned nearly £2m last year despite a 20% fall in the broadcaster’s share price.

Mr Grade – drafted in to revive the ailing company more than a year ago – gained a total package of £1.93m, ITV’s annual report shows. His salary of £813,000 was dwarfed by a bonus of £967,000 and further benefits and cash payments totalling £154,000.

The healthy reward contrasts with the fortunes of ITV’s share price, which fell to 85.4p by the end of 2007 and has since plunged to record lows.

Mr Grade’s bonus – 117% of his basic salary – could have been even higher if not for the premium rate phone-in scandal last year which hit ITV’s revenues.

The payout is determined by other factors, including the broadcaster’s adjusted earnings per share performance and its market share.

Last year annual profits fell by 35% to £188m, although Mr Grade said the ITV stable of channels had delivered their first viewing increase last year since 1993.

The executive chairman could also gain a potential £6m in shares over the next five years under a special incentive scheme linked to improvements such as revenue growth and the share price hitting 135p – double its current level.

The shares have been hit by the Government ordering rival BSkyB to reduce its controversial 17.9% stake in ITV to less than 7.5%. BSkyB is appealing against the decision.

Mr Grade has also argued that the Contract Rights Renewal advertising regime – which allows advertisers to cut spending on ITV1 if ratings decline – is unsuitable for the digital age and hinders the broadcaster’s recovery.

The CRR regime is currently being examined by regulators.