ITV appoints new chairman

British commercial broadcaster ITV has appointed Archie Norman, a turnaround specialist and former Conservative politician, as…

British commercial broadcaster ITV has appointed Archie Norman, a turnaround specialist and former Conservative politician, as its new chairman.

Mr Norman, who is known for turning around supermarket chain Asda and the telecoms business Energis before selling both, will take up the position in January, replacing industry veteran Michael Grade.

The former boss of Kingfisher, who said he still has close ties with the opposition Conservative party, will then be in charge of appointing a chief executive to lead the group as it emerges from the worst advertising downturn for decades.

He will also be responsible for lobbying politicians and regulators in a bid to ease the burden on the broadcaster, home to the talent show X-Factorand soap opera Coronation Street, at a time when the Conservative party is well ahead in the polls as a general election approaches.

"We see the appointment of a heavyweight chairman with an established track record as a positive move for the company," UBS analysts said in a note.

"Amid a backdrop of improving ad momentum and a strong viewing share performance, there may be a possibility that Norman may make limited changes to the current executive line-up rather than look externally."

Mr Norman (55) said there were few opportunities that would have tempted him back into the public company arena, but that ITV "is definitely one of them".

"It is an irresistible challenge, a great brand, a people business with enormous talent, but facing an imperative for change: the challenge of adapting to compete in a fragmented digital media world."

The announcement goes some way to bringing an end to the very public leadership saga that has embarrassed the broadcaster since Mr Grade said he would step back from the day-to-day running of the company, with a string of possible contenders ruling themselves out.

Mr Grade, who jumped ship from the BBC to join ITV as executive chairman and its apparent saviour in 2006, then said he would stand down completely and appoint a chairman to find a new chief executive after a host of high-profile executives ruled themselves out of the running.

Mr Norman said John Cresswell would remain in his position as interim chief executive while he starts afresh the hunt for a new chief executive. James Crosby, the head of the nomination committee, is to step down.

Mr Cresswell has said he intends to step down from ITV when a new chief executive is found but analysts have speculated that he could be persuaded to stay, especially after the group reported an improving advertising climate earlier this month.

"I don't mind whether I'm first choice or 51st choice," Mr Norman told reporters during a conference call.

Mr Norman said "transformational challenges (are) ... what I do", but that people should not read too much into how he had tackled problems in previous his roles.

"ITV's a very different business from the ones I've worked in in the past, and I absolutely don't think a formulaic approach is going to work," he said.