ALEX BRUMMER: ITV’s boardroom drama

ITV’s boardroom drama: Boss Carolyn McCall must be careful not to be blown off course by on-screen and behind-the-scenes events, says ALEX BRUMMER

  • ITV finally believes it is now ahead of crisis on sofa of This Morning show 
  • Investigation into Phillip Schofield intended to limit reputational damage
  • It will offer breathing space to chief executive Carolyn McCall 

After days of terrible headlines, ITV finally believes it is now ahead of the crisis on the sofa of the This Morning show.

The appointment of King’s Counsel Jane Mulcahy to investigate alleged predatory behaviour by former presenter Phillip Schofield is intended to limit reputational damage to brand ITV and offer breathing space to chief executive Carolyn McCall.

She has some hard grind ahead, seeking to reverse a 29 per cent drop in the broadcaster’s share price in the last several months.

The group is anxious to take some decisive action ahead of the scheduled hearings on the scandal by MPs next Tuesday at which McCall may be required to appear.

ITV also recognises that there are banana skins ahead, including potential new disclosures.

Hard grind: ITV also recognises that there are banana skins ahead, including potential new disclosures

All the indications are that ITV’s board, chaired by Andrew Cosslett, are behind McCall, and her five-year stewardship of ITV is in no danger. McCall recognised that ITV needs to be a player in the exploding world of streaming and she is keen to see the growth of ITVX.

But British shareholders seem to have a great deal more interest in share buybacks than committing capital to promising but unproven new ventures.

The broadcaster ought to have earned trust through the way it has diversified income streams, with about half coming from studio and production.

A problem for McCall is that the Schofield affair is not the first time it has found itself blown off course by screen events.

The ‘suicide’ legacy among participants in lucrative Love Island is not fully resolved.

McCall also found herself at the vortex of a row over the departure of Piers Morgan from Good Morning Britain.

Given this series of incidents, it might have been thought that McCall and her executive team might have found ways of ring-fencing themselves from issues which should have been properly handled by line managers.

A possibility might be appointing an internal ethics chieftain.

Broadcasting stars have their own deck of agents and are very good at turning the cannons on management.The real test will come if the Mulcahy report uncovers evidence of a systemic cover-up.

All of this is an enormous distraction.

McCall enjoys a stellar reputation in the City for the growth of Easyjet under her stewardship and the way she stood up to its founder and major shareholder Stelios Haji-Ioannou.

In the end, McCall will want to be judged on her decision to plough ahead with the relatively modest £160m investment in ITVX. Early indications suggest that, with 3m people signed up and a wealth of historic programming to call upon, its value will be recognised by sceptical investors.

But she has to be careful not to be blown off course by on-screen and behind-the-scenes events before then.

Last mile

Britain’s banks have devised crafty methods of growing earnings.

One is by increasing net interest margins, doing a disservice to loyal savers, and the other is by closing branches. Lloyds Bank is at it again – slashing 53 branches from its network, from Newcastle to Paignton.

We are meant to be relaxed about this on the grounds that 20m customers use online facilities and because there is a Post Office within one mile of the closed branch.

This fails to recognise that there are large sections of the population, including the elderly, those rightly suspicious of fraud and sole traders, who value branches.

There are any number of us who used to think that branches were a place to go to discuss mortgages, get advice and pick up foreign currency.

No one will be comforted by knowing a Post Office is a mile away.

Aside from the fact it is a long walk, the network is a nightmare, with crumbling branches and often-resentful staff having to process the millions of Amazon parcels being returned to sender. Chief executive Charlie Nunn needs a reality check.

Murky waters

There is nothing to like about the financial results from alleged polluter Pennon, home of South West Water.

It, like the other water firms, proposes to load £10billion of investment in clean water on to users’ bills, while reporting losses and paying out a hefty dividend of £112m.

Is there no humility?

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