In an update to the City this morning (23 April), ITV said Grade intends to relinquish his executive chairman role - which has in effect seen him operate as ITV's most senior executive in the absence of a chief executive - "no later than the end of 2009". ITV has been without a chief executive since Charles Allen left the company in late 2006.
The broadcaster has decided that with a handful of key regulatory reviews due to be completed at the end of the year, that would be the appropriate time for a new chief executive to take over.
While the broadcaster's advertising and financial performance has deteriorated, Grade has won plaudits for his work in steering ITV through several regulatory reviews. These include the review of Contracts Rights Renewal, the mechanism which controls agencies' ad spend with ITV, and Lord Carter's Digital Britain work, which will map out the future UK commercial TV landscape.
ITV said: "In the light of the regulatory timetable now expected, Michael Grade has recommended to the board that the conclusion of the regulatory reviews will be the right time for him to relinquish his executive responsibilities and become non-executive chairman, as planned. The board has agreed with this recommendation and accordingly will now commence a formal search for the next CEO."
ITV said it plans to appoint a new chief executive "as soon as practicable following the outcome of the CRR regulatory review" and no later than the end of 2009.
When Grade joined ITV as executive chairman at the start of 2007, it was intended that the broadcaster would appoint a chief executive and that Grade would relinquish overall control by late 2009. However, last year, ITV announced Grade's stay as executive chairman had been extended by a year to 2010.
Separately, ITV said it has no current plans for a rights issue to raise more cash to boost its balance sheet. In its 2008 results, the broadcaster plunged to a £2.7bn loss after a huge write-down in the value of its assets. And in recent weeks, speculation has mounted that ITV would need to approach shareholders to raise more cash.
ITV said: "It is the board's view that, taken together and ahead of important regulatory decisions expected towards the end of the year, these actions are appropriate in this uncertain market. The board further believes that the company has adequate liquidity as it stands today and is therefore able to confirm it has no current plans for a rights issue."
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