Media group's bosses take 20% pay cut
Executives at Scottish media group STV will take pay cuts of up to 20% and waive bonuses this year as the broadcaster battles against a deep advertising slump, it was announced today.
Pay cut: Rob Woodward, STV chief executive
STV's chief executive Rob Woodward will see his £380,000 annual salary reduced by a fifth between May 1 and the end of the year under the voluntary pay cut plans.
The group also revealed it had hired media veteran Michael Jackson as a non-executive director in his first major UK post since he left his role as chief executive of Channel 4 nearly eight years ago.
STV - formerly SMG - said it was intensifying cost cutting efforts after failing to see any improvement in its battered broadcasting division since February.
The total television advertising market is forecasted to plunge around 20% in April and May, with STV and ITV1 trading slightly behind the market.
Regional television advertising has remained more volatile than the national market and is forecast to be down 5% in April and down between 10% and 15% for May, it added.
Cinema advertising is also being hit hard and is now forecast to be weaker than first thought, according to STV, which said it is hoping to sell off its Pearl & Dean cinema advertising business 'at the earliest opportunity'.
Pay is being cut across its senior team amid the gloomy outlook, with the group's chief financial officer George Watt - who earns £214,200 a year - taking a 15% reduction between May and the end of 2009.
The wider team of top executives will see salaries decrease by between 10% and 15%, it added. 'Whilst these salary and bonus costs have already been budgeted for, the leadership team is totally committed to the business and share a strong belief in the future of STV and a confidence that we will deliver our growth targets,' said STV.
'We have identified a range of measures to mitigate the effects of the economic downturn and this additional decision will allow for increased investment in the business at this time.'
Mr Jackson will join STV's board on May 1, from his current role as senior adviser to new media group IAC. At Channel 4, he was responsible for commissioning shows such as Da Ali G Show and So Graham Norton. He also previously acted as controller of BBC1 and director of television and controller of BBC2.
STV shares dropped 7% today on news of the grim advertising outlook.
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