Former STV chief paid for ‘loss of office’
THE former boss of STV received a £166,000 payment for “loss of office” following his decision to resign last year, the broadcaster’s annual report has revealed.
Rob Woodward, who had been chief executive of STV for nearly 11 years before stepping down in December, was paid the sum in lieu of notice. The payment comprised his base salary, benefits and pension allowance for the final four months of his 12-month notice period which he did not work, the Glasgow-based company said.
Mr Woodward announced his decision to resign on April 25 last year.
The report shows that Mr Woodward, who was succeeded by former ITV veteran Simon Pitts in January, received a total remuneration package worth £679,000 in 2017.
That included a basic salary of £401,000 up from £395,000 in 2016, and a bonus of £159,000 - equal to around 40% of his salary. He also received £41,000 of shares under a long-term incentive plan (LTIP).
According to the report, Mr Woodward had unvested LTIP awards comprising 198,925 shares at December 31.
The company’s 2015 LTIP, which was based on the performance of the company over three years to December 31, 2017, will vest in June.
The deferred share element of the 2016 annual bonus plan will be released in line with the normal release date in March 2020, the company said.
Meanwhile Mr Pitts received £187,000 on joining the firm, which STV said reflected a cash payment he forfeited by leaving ITV. He was also awarded deferred shares with a face value of £666,000, which will vest in phases between now and 2021, and an STV Group LTIP award with a face value of £652,000. That will vest in 2020, subject to company performance targets measured over three years to December 31, 2019. Mr Pitts will receive a base salary of £400,000 this year, the report confirmed.
The company has a policy to ensure a two-year post-vesting holding period is applied to all LTIP awards from this year onwards.
Speaking to The Herald shortly before his departure, Mr Woodward declared that the company was in a “very different and much healthier place” compared with how it was when he arrived. He cited the launch of the broadcaster’s flagship STV News Tonight programme and new digital channel STV, dedicated solely to Scottish audiences, among the highlights of his tenure.
Mr Woodward reflected that STV has “reconnected with our consumers, it’s reconnected with civic Scotland and our brand is in high esteem.” He added: “It feels like, from many points of view, the company is in a much stronger position and is a lot more rele- vant and more vibrant than it was 10 years ago.”
STV reported a three per cent fall in pre-tax profits to £18m in 2017, citing weak conditions in the advertising market and the effects from ongoing economic uncertainty. Unveiling the results to the City, Mr Pitts said the company had put in a “resilient during a “difficult year for advertising revenues and the wider UK economy”. Revenue dipped three per cent to £117m as Brexit uncertainty continued to exert caution in the market.
The company lifted its total dividend by 13% to 17p per share for 2017, and has launched a £10m share buy-back.