Outcry Forces Granada Chairman to Waive Golden Goodbye

24 March 2003

The two-year rolling contract that could enable the chairman of Britain's largest terrestrial commercial TV broadcaster Granada to walk away from the company with a £2 million ($3.14m; €2.96m) golden payoff has reportedly been relinquished by the man himself, according to The Sunday Times.

Such deals are now held contrary to corporate best practice, the norm for senior executives at other large UK media companies being one year. The largesse enjoyed by Granada chairman Charles Allen has been publicly cricicized by a number of the company's institutional shareholders [WAMN: 17-Mar-03], all of which remained surprisingly mute at the group’s AGM last week.

However, the surprise revelation that Allen has ‘voluntarily’ renounced his container-load of cash suggests a behind-the-scenes deal to ensure equanimity at Granada’s public annual meeting.

Rocking the boat right now [when the media giants’ merger with fellow ITV company Carlton Communications is under the microscope of the Competition Commission] would benefit no-one.

Data sourced from: Sunday Times (UK); additional content by WARC staff