ITV chief quits

Under-pressure ITV chief executive Charles Allen has announced his resignation today after two and a half years at the helm of the commercial broadcaster.

Mr Allen has come under pressure from low viewing figures and declining advertising revenues at the company's flagship channel ITV1.

Shareholders have also been concerned he has been slow to respond to new media and the threats and opportunities presented by it.

Mr Allen has been at Granada and lately ITV plc for 15 years - ten of which were as chairman or chief executive. He was a key player in the merger of Granada and Carlton to create a single ITV plc in early 2004.

ITV's board met yesterday to discuss the terms of departure for Mr Allen ahead of the company's half-year results to be posted on Wednesday.

The broadcaster said Mr Allen will receive his contractual entitlement to one year's salary, as well as "augmentation" of his pension.

Mr Allen earned £1.85 million last year, including £777,000 in short-term incentive payments, while his pension pot was worth £8.5 million.

The statement said Mr Allen would remain at the company while head-hunters carried out the process of finding a replacement.

Finance director John Cresswell has been appointed interim chief executive from October 1 and will work alongside Mr Allen to ensure an "orderly transition".

Mr Allen said: "My focus now is to support John and the board through the transition process, following which I will move forward to the next chapter of my life and a new set of challenges."

Stephen Carter, the outgoing head of media regulator Ofcom, has been among those linked to the top job at ITV.

ITV chairman Sir Peter Burt said Mr Allen had done an excellent job integrating the business after the merger, including in reducing costs and cutting the burden of regulation on ITV.

Sir Peter said: "The growth in the company's business and profits since the merger reflects that success.

"I have enjoyed working with Charles over the past two and half years and we all wish him the best in the future. We shall watch with great interest his future contribution to UK plc."

ITV has already said it expects to report a 4.6% slide in advertising revenues tomorrow, with analysts forecasting a fall in first half operating profits from £200 million last year to between £175 million and £192 million.

In March, Mr Allen fended off takeover interest from a consortium of private equity firms which planned to replace him as chief executive with former BBC director-general Greg Dyke.

While his departure will trigger a race for one of the most high-profile jobs in UK media, it is unlikely to deter bidders for the firm.

Johnston Press chairman Roger Parry is among those believed to be interested in ITV and is said to have plans to split the broadcaster into two separate companies - one housing production and the other channels.