ITV hails Grade’s defection from BBC

Published Tuesday 28 November 2006 at 16:35 by Liz Thomas

Programme makers, politicians and broadcasting executives have hailed Michael Grade’s defection from the BBC to ITV as “brilliant” news for the network’s creative strategy and a turning point in its fortunes.

Grade, who has been chairman at the Corporation since 2004, is stepping into the newly-created post of executive chairman at its commercial rival. At this stage, the position combines the roles of chief executive - previously held by Charles Allen - and chairman, replacing Peter Burt who has said he is ready to leave.

His swift switch came as a shock to the industry but insiders say that poaching the former showbusiness impresario has been a coup for ITV. The broadcaster is now looking to him to steer it back to its programming heyday after it was founded by his uncle Lew Grade.

One senior source at ITV said: “Everyone is really pleased. It is great to have Michael with us and going forward this is going to have an impact on programming and strategy. The wonderful thing is that finally we have a man who is a creative, not just a businessman. He has experience of programme making and understands the demands of the industry, he is not another suit who cuts costs.”

Such was the mood at the broadcaster that when Grade made his first appearance at network centre after the news had broken, a huge cheer erupted through the building. Many had become increasingly frustrated by the problems in senior management, which have been going on for more than a year, leaving the organisation in limbo and having a knock on effect in programming and morale.

Conservative MP John Whittingdale, who is chairman of the Culture, Media and Sport Select Committee, explained: “It is a brilliant appointment by ITV. He is highly respected in the industry and importantly, as a programme maker. This will reassure a lot of investors and advertisers - because this is a man who understands the business. Everyone recognises his talent and this could mark a turning point for ITV. For the past year it has seemed like it has been staring down the barrel of a gun and then suddenly somebody who has the potential to really change things around has come along.”

While popular in the media, Grade has not been immune to criticism both from the City and from showbusiness figures. As chief executive of First Leisure, the company founded by another uncle, Bernard Delfont, he sold off many of its assets, including Blackpool Tower and was accused by his aunt of destroying her husband’s legacy. Meanwhile, while serving as non-executive chairman of Pinewood Shepperton, in 2005 the company missed profit forecasts, prompting a drop in the value of shares.

In his new post, the executive is set to net as much as £8 million - combining a basic salary of £825,000, bonus schemes and shares over three years in the deal. However, the board will continue its search for a permanent chief executive, at which point Grade will become non-executive chairman. This is expected to happen by 2009.

He said of his new job: “I’m going to give the BBC a run for their money. ITV is one of the greatest British media brands. It is up there with the best. It’s the centenary of my uncle Louis’ birth. He was a founder of ITV and I started there in 1973 so it is a bit like going home really. It’s not been the happiest of moments watching ITV struggle. I will do my best to restore its advertising fortunes. I will do my best for its viewers.”