Broadcaster's chief executive paid salary after 15% upswing in the TV ad market
ITV chief executive Adam Crozier earned almost �1.7m for just eight months' work after the broadcaster reported bumper profits last year thanks to a resurgent TV advertising market.
Crozier, who joined ITV on 26 April, received a total remuneration package just under �1.2m last year. This included a �532,000 base salary, a �344,000 "golden hello" ? comprised a one-off �200,000 in cash and the first of three payments linked to a joining package of shares ? and �252,000 as a "short-term" cash bonus.
The chief executive's total bonus was �757,488 ? which amounted to 95% of his full entitlement according to the company's annual report released Tuesday. However the remaining �505,000 has been deferred into shares for three years.
Crozier has been able to obtain such a substantial bonus thanks to an upswing of about 15% in the general TV advertising market, which the broadcaster was able to outperform thanks to ratings winners such as The X Factor and Downton Abbey.
ITV's remuneration committee based its bonus payouts on increasing profits, converting profits into cash and, in Crozier's case, on achieving "individual targets". In terms of profit generation ? judged on earnings before interest, tax and amortisation ? ITV managed to more than double profits year on year to �408m. The committee said this represented 132% of the target set. Crozier also received a payout level of 90% of the maximum possible amount set against a number of unspecified personal targets.
Already this year Crozier has been awarded a 3% increase in basic pay ? matching the 3% increase handed out to all ITV staff earning less than �60,000. Employees who earned more than �60,000, but are not directors, received increases in line with their performance, the report said.
However, Crozier's total bonus opportunity ? previously at 150% of basic pay ? was increased to 180%. ITV said it was giving directors higher bonuses, but requiring them to increase the amount that is awarded in deferred share payments.
However he has yet to make a substantial strategic move to change fundamental issues facing ITV such as the dependence on free-to-air advertising, the "subscale" ITV.com operation and the ongoing difficulties inhouse production division ITV Studios faces in producing global hits.
Overall ITV paid out almost �3.7m to directors last year, including almost �1.2m in cash bonuses. Former executive chairman Michael Grade, who left ITV on 31 December 2009, was paid �167,000 for the remainder of his contract until 30 April last year. In 2009 Grade received a total remuneration package of �2.1m, including a bonus of �1.16m.
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Source: http://www.guardian.co.uk/media/2011/mar/08/itv-adam-crozier-salary
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