BBC Chairman resigns to take reins at ITV

BBC Chairman Michael Grade has announce his resignation to become the Executive Chairman of ITV.

Mr Grade will take on responsibility for the business of the company and John Creswell, the interim Chief Executive Officer, will become Chief Operating Officer and Finance Director.

Under the provisions of the current BBC Charter, the Vice-Chairman Anthony Salz becomes Acting Chairman of the BBC with immediate effect and Chitra Bharucha becomes Acting Chairman of the BBC Trust with immediate effect.

The defection has come as a shock to the broadcast industry as Michael Grade's name was not featured in the list of candidates to succeed Charles Allen and it also comes at a crucial stage in the BBC's discussions with the government on the future of the licence fee.

BBC Director-General Mark Thompson has released a statement praising Mr Grade's ability: "I believe that over the past two and a half years he has been an excellent Chairman of the BBC.

"He played a critical role in charter renewal and helped design a system of governance that I am confident will stand the test of time.

"ITV needs a new leader and Michael's many strengths and long experience make him a strong candidate for the job. We're sorry to see him go but wish him the very best for the future."

Mr Grade, who has lead the corporation through a contentious period reflected on his time at the BBC in an email circulated to all staff: "So much has been accomplished in the last two and a half years that I feel comfortable that I have achieved what I set out to achieve - namely restore the equilibrium of this great institution, to lead the process to appoint a new DG, to secure a new ten year Charter and to reform the governance of the Corporation.

"ITV is a competitor to the BBC, yes. But the BBC need ITV to be strong, both for competitive reasons and to maintain the balance of power within British public service broadcasting."

He added: "I leave with the feeling that I have done the best I can to secure the future of the institution about which I will always care so deeply, I leave with some sadness because of all the friends old and new who have been my support over the past two and a half years."

Mr Grade commented: "It is a great privilege to have been invited by Peter and the Board to become the Chairman and lead ITV.

"My first priority at ITV will be to support the team in accelerating the improvement in programming performance for our viewers and advertisers. This is the best way to enhance the value of the Company for our shareholders."

Within three years, Mr Grade and the ITV Board expect to appoint a Chief Executive as he steps back from day-to-day management, to become the non-executive Chairman.

(DS/SP)