Granada rules if Carlton three quit ITV

CHARLES ALLEN, chief executive of ITV, fears that three board members may be forced to step down after authorising £27m pay-offs to former Carlton directors.

Allen is understood to believe that they may have to quit if the furore over the payments continues to overshadow ITV's resurgence in the run-up to the company's first annual general meeting on 19 April.

All ITV directors face re-election to the board at the meeting.

Allen, the former chairman of Granada, led his company's £5.8bn merger with Carlton to create ITV, Britain's biggest commercial television network.

The removal of the three ex-Carlton directors would leave ITV under sole control of ex-Granada staff.

The ITV deal was always touted as a merger, but removing former Carlton bosses would reinforce the impression of a takeover by Granada.

One of the remaining Carlton directors is Sir Brian Pitman, who was acting chairman of ITV after the ousting of Carlton boss Michael Green by rebel shareholders last year. The others are John McGrath and Etienne de Villiers.

The three authorised payouts to Green, who received £15m, finance director Paul Murray (£7m), and to company secretary David Abdoo (£5m), causing an outcry among shareholders.

An industry source said: 'Allen is very supportive of Pitman. He is neutral in terms of whether or not it is a good thing for the old Carlton directors to be on the board, because that is a decision for shareholders.

'But it would be an issue if decisions taken by former Carlton board members overshadowed ITV going forward, just as ITV plc starts to deliver.'

Pitman has met ITV's major shareholders to discuss the issue. He told them he was unhappy with the payouts, but felt obliged to go ahead after taking legal advice.