Michael Grade says goodbye to television

Michael Grade, chief executive of Channel 4 since 1988, is to leave the company and television altogether, it was announced last night.

In a statement which shocked the industry, the board of Channel 4 revealed that Mr Grade would leave the company later this year. It did not, however, elaborate on Mr Grade's plans, although it appeared that he was intending to pursue wider business interests, perhaps in the football world. He is a director of VCI, a video publishing company, and a non-executive director of First Leisure.

At a board meeting at 5pm yesterday Sir Michael Bishop informed the rest of the Channel 4 board that Michael Grade would be leaving not later than the end of July. Sir Michael told The Independent: "Michael advised me before Christmas that he had decided after very careful consideration that after 20 years in broadcasting he would like to leave the television industry and pursue his other business interests. Since then, the last four weeks, we've been discussing with Michael and his legal advisors the terms and conditions under which the channel would be prepared to release him from his current service contract [due to end in June 2000]."

Sir Michael added that while Mr Grade had been committed to work at Channel 4 for a further five years, he had only served 18 months. He said: "I would not have been able to recommend that the Board released him unless I was satisfied with the terms and conditions. He cannot work in the television industry when he leaves." This was normal procedure.

Famous for his cigars and braces, the former controller of BBC1 was described by the Daily Mail as the country's "pornographer in chief" after Channel 4 commissioned a series of risque late-night shows including Eurotrash, Red Light Zone and programmes for gay people.

He has campaigned successfully, to end the "funding formula" by which Channel 4 is forced to pay a huge proportion of its profits to the ITV companies, and also last year fought off the spectre of privatisation.

David Scott, the finance director, was promoted to the new post of managing director to hold the fort.