BECAUSE I’M WORTH IT!
STV boss defends his pay package of £1.2MILLION – while saying redundancies ‘necessary’ to save cash
THE boss of STV yesterday defended his seven-figure pay package, claiming he is being paid to ‘build a business’.
Simon Pitts also failed to rule out compulsory redundancies at the broadcaster, telling MSPs that plans which will see nearly 60 workers lose their jobs are ‘necessary’ to guarantee its future.
The chief executive also denied suggestions that STV would be sold off.
Mr Pitts last month announced plans to close the loss-making STV2 and restructure the STV news operation, putting 59 jobs at risk. As a result, journalists and production staff threatened to strike.
Mr Pitts appeared in front of Holyrood’s culture committee yesterday where he revealed that ‘hardly anyone’ watched STV2, with the 7pm news programme attracting only 1,800 viewers.
And he claimed that proposals to create a range of new shows in Scotland could facilitate many more jobs, ‘dwarfing’ those currently under threat.
But MSPs attacked the chief executive over the plans – and urged him to justify his remuneration package.
As well as a basic salary of £400,000, he received an £853,000 ‘golden hello’ – made up of a £187,000 payment and deferred shares worth £666,000 – on taking up his post in January.
Green MSP Ross Greer told Mr Pitts: ‘You, this year, will receive £1.2million in total earnings. There are people in your newsroom on £18,000 a year, journalists who are facing redundancy. That’s their livelihood. It must be incredibly hard for them to stomach that when they see people at the other of the organisation receiving the kind of remuneration that you are.
‘Do you understand how harsh that is for them and did you consider forfeiting any of your total potential earnings for this year?’
Mr Pitts did not address the issue of forfeiting his money but said the package had been approved by the STV board and shareholders.
He said: ‘I’ve been brought in here to build a business and that is what I am doing, purely.
‘I understand how difficult the situation is for the people facing redundancy. It’s horrible.
‘We have made a series of difficult decisions that have a real impact on people’s lives. We have done that in order to be able to grow this business, to use the savings we are making in order to reinvest for the future.’
STV made a profit of £18million last year and the changes are expected to save £2million annually, with a further £5million being invested in new programmes.
‘This is not a strategy to prepare STV for sale to ITV or anyone else. If that were the case, then we simply wouldn’t be investing,’ Mr Pitts said.
He also failed to rule out compulsory redundancies, claiming they would be necessary if enough people did not volunteer to leave.
It is believed workers are unimpressed with packages being offered, prompting fears few will apply for voluntary redundancy.
It is understood that staff may go on strike with many ‘very angry’ over the cuts.
Scottish Labour justice spokesman Claire Baker said: ‘These job losses are not only a devastating blow to those workers affected
‘Gold-plated remuneration’
but to Scotland’s entire media industry. For a national broadcaster to scale back its news operations in a bid to make ‘‘savings” while its chief executive pockets more than £1million is deeply concerning.
‘I am keen to hear how Simon Pitts can justify a gold-plated remuneration package while making staff redundant under the guise of cost cutting.
‘Scotland needs a strong and independent news sector to hold both governments at Westminster and Holyrood to account. STV has been lauded for its local and national news and politics coverage. These redundancies seriously risk undermining that.’
Convener Joan McAlpine said the committee ‘remains concerned’ about the proposed changes to news coverage and wants further evidence from the broadcaster.
She said: ‘We question STV management’s assertion it is possible to produce higher-quality news coverage with fewer journalists.’