Ten chief Hamish McLennan steps down
Ten Network chief executive and executive chairman, Hamish McLennan, has stepped down after almost two years at the helm.
Chief operating officer and chief financial officer, Paul Anderson, will replace McLennan as chief executive, while David Gordon has been appointed chairman.
Gordon has been a director of Ten since April 2010 and, as a member of the Independent Board Committee, has been closely involved with the strategic transactions announced on June 15.
Gordon thanked McLennan for his contribution during what had been a "challenging period".
"He has led a strong and talented management team to effect a turnaround in the Company’s performance," he said.
“Hamish will work with myself and Paul Anderson on a seamless transition and he will continue to advise and assist the company until the end of the year.
“Ten is in an important and exciting phase, as we continue to build our revenue on the back of strong audience growth since mid-2014 and transition our sales activities to Multi Channel Network (‘MCN’); and maintain our clear focus on growth and efficiencies,” he said.
Hamish McLennan said the strategic arrangements announced on June 15, including the proposed investment by Foxtel in Ten and the transformative agreement with MCN, meant that his role had been completed.
“An independent Chairman is needed to lead the Board through the next phase of the Company’s development," he said.
"David Gordon has been an exceptional director and his contribution has always been of the highest standard.
"He will represent all shareholders very well.”
On the appointement of Anderson, Gordon said the board was delighted to have such a strong internal candidate.
"We were unanimous in appointing him as chief executive officer. He is a 12-year veteran at Ten, well-respected internally and externally, and is the ideal person to lead the
McLennan said Anderson been a great partner in the dual role of COO and CFO.
"I have greatly valued his help and support in developing the plans for the significant resurgence TEN is now experiencing.”
Anderson has been chief financial officer of Ten since March 2011, having held various senior finance roles at the Company since he joined in 2003.
He was promoted to the role of chief operating officer in April 2014 with oversight across all areas of the business.
Anderson said he was extremely honoured to be offered the opportunity by the Board.
"I look forward to continuing to work with the very talented team at Ten to build on the improvements we have seen over the past year or so and execute our strategy, which remains unchanged," he said.
“Ten has ratings and revenue momentum, as demonstrated by the 15 per cent audience growth our primary channel achieved in the first half of the 2015 ratings year and the exceptionally strong revenue growth we have seen in recent months.
“At the same time, the transition to MCN is progressing smoothly and has been very well received by the market.
The strategic arrangements announced on June 15 included the appointment of MCN as sales representative of Ten’s television and digital advertising inventory; the proposed
investment in Ten by Foxtel Management Pty Ltd, as agent for the Foxtel Partnership (“Foxtel”); and the proposed renounceable entitlement offer to Tenshareholders.
Gordon’s appointment is the first step in the Board changes announced on June 15 that will reduce board's size to six directors.
The Board will then comprise two independent directors (one of whom will be chairman), one representative of Foxtel and three representatives of existing major shareholders.
Ten will undertake a selection process for a new chief financial officer.
Anderson’s fixed remuneration is $1,250,000 per annum, subject to an annual CPI increase or three per cent.
If cash flow targets are met, Anderson’s fixed remuneration will increase to $1,450,000.
The fixed remuneration will increase to $1,650,000 from the year in which cash flow targets are met following the refinancing of the Company’s facility with the Commonwealth Bank.