Grade lined up for £12m package at ITV

Michael Grade was lured from the BBC to join ITV on a pay package worth more than £12m over the next five years if the new executive chairman can turn round the struggling commercial broadcaster.

The potential jackpot is based on Mr Grade hitting all of the board's performance targets during his pre-agreed three years in an executive role.

He will be handed shares worth £6m under a five-year incentive plan that was disclosed in yesterday's annual report. The ultimate value of the award depends on what level the group's shares are trading at in 2012 when the shares will vest. Mr Grade must also ensure the company hits various targets - including growing its revenues by 5 per cent a year, delivering earnings per share of 12p and securing a 38.5 per cent share of the audience viewing figures for advertisements - to scoop the maximum payout.

ITV's report also revealed Charles Allen, his predecessor, pocketed more than £5.4m in his final year as the group's chief executive. This included £4.2m in compensation for being forced to quit last August.