Grade Resigns from BBC to Become ITV Executive Chairman

LONDON, November 28: Michael
Grade has resigned as chairman of the BBC and is taking the post of executive
chairman of ITV, the U.K.’s leading commercial broadcaster.

Grade’s resignation is
effective immediately and he will start at ITV early in 2007. In the meantime, under
the provisions of the BBC’s current Charter, the vice-chairman Anthony Salz
becomes acting chairman of the BBC with immediate effect and remains in that
post until the Board of Governors is dissolved at midnight on December 31,
2006.

Chitra Bharucha becomes acting
chairman of the BBC Trust with immediate effect, it having powers limited to
the transitional provisions as stated in the new Charter, prior to the BBC
Trust assuming its responsibilities in full with effect from 1 January 2007.

“Michael Grade has been an
inspirational leader of the BBC since his appointment in May 2004,” says Salz on
behalf of the Board of Governors. “His passion for quality and value for money
has been a driving influence for major changes, all with the sole purpose of
delivering a better service for the public. The Board is disappointed he is
moving to ITV, but he leaves behind a BBC that is passionate about and
committed to serving the public in new and exciting ways.”

"All of us recently
appointed to the BBC Trust are disappointed we will not have an opportunity to
work with Michael Grade,” adds Bharucha on behalf of the BBC Trust. “His
success in securing a new 10 year Charter for the BBC that safeguards its
independence and ensures it operates only in the public's interest is testimony
to his time as Chairman.

“Importantly, and because of
him, the Charter future-proofs the new governance arrangements which will be
operational from January and place the interests of license fee payers at the
heart of our decisions.

The BBC Trust wishes Michael
Grade well for the future.”

Grade sent the following
message to all BBC employees:

“Dear friends and colleagues,

“A short while ago, an announcement was made to the Stock
Exchange about my appointment to ITV. It contains some bare facts which
disguise what has been a huge personal decision for me, namely to leave the
BBC. Firstly, I would like everyone to understand this is a career decision.
What it is NOT is a reaction to anything, internal or external. I was faced
with the choice of getting back into programming or 'governing' the BBC from a
distance. Those of you who know me will understand just what an effort of will
it has taken for me, as chairman of the Governors, not to look at the overnight
ratings every day, not to engage in idle programming chit chat with the
brilliant creatives who are currently taking BBC television, radio and online
to new heights of quality, and so on.

“Looking back over the past
two-and-a-half years, I can say I have never felt so privileged, never felt
such a responsibility, and never felt so proud. Being the chairman of the BBC
was the most unexpected job I have ever had. The welcome you gave me on my
arrival is embedded deep within my emotional DNA. At that moment I realized
what was at stake for me, for the BBC.

“So much has been accomplished
in the last two and a half years that I feel comfortable that I have achieved
what I set out to achieve—namely restore the equilibrium of this great
institution, to lead the process to appoint a new DG, to secure a new ten year
Charter and to reform the governance of the Corporation. With the help of my
fellow governors and the new Governance Unit, the future is secure, the independence
of the BBC is safeguarded and, most important of all, our programs across all
media are maintaining the overwhelming support of the license fee payers.

“ITV is a competitor to the
BBC, yes. BUT the BBC does need ITV to be strong, both for competitive reasons
and to maintain the balance of power within British public service
broadcasting. So I leave with the feeling that I have done the best I can to
secure the future of the institution about which I will always care so deeply,
I leave with some sadness because of all the friends old and new who have been
my support over the past two and a half years. What I won't miss is the BBC
sandwiches at meetings. They have taken re-cycling to new heights. But I
digress…

“In a speech I made when I was
CEO at Channel 4 I included the words: 'It's the BBC that keeps the rest of the
industry honest.' That is as true today as it ever was. I am off to a new
challenge, maybe at 63 my last real job, and hopefully give you a run for your
money. That's how it should be. Look after Auntie, I am sure you won't need me
again. And thank you for having me.

Yours ever, Michael
Grade."

Mark Thompson, the
director-general of the BBC, sent this message to BBC staff following the
announcement of Grade’s resignation:

“Many of you will have already
heard the news that Michael Grade, the Chairman of the BBC, has decided to
accept the job of Executive Chairman of ITV. Michael is stepping down from his
responsibilities at the BBC today. Anthony Salz will take over as Acting Chairman
with immediate effect.

“I know that some of you will
find Michael's decision and its timing surprising. I believe that over the past
two and a half years he has been an excellent Chairman of the BBC. He played a
critical role in charter renewal and helped design a system of governance that
I am confident will stand the test of time. The new BBC Trust will start as
scheduled at the start of next year and I and the rest of the executive team
are looking forward to working with them. We will work with Governors and
Trustees to ensure a smooth transition.

“ITV needs a new leader and
Michael's many strengths and long experience make him a strong candidate for
the job. We're sorry to see him go but wish him the very best for the future.

“All the best, Mark.”