easyJet share price subdued as CEO resigns to run ITV

Shares in easyJet (LON:EZJ) have lost ground in London this morning, while ITV (LON:ITV) is rallying, as the FTSE 100 airline said that its chief executive will be stepping down to take the top job the blue-chip broadcaster. Carolyn McCall, who has been running easyJet since 2010, is expected to leave the company toward the end of the year.

As of 08:25 BST, easyJet’s share price had lost 0.78 percent to 1,400.00p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.41 percent higher at 7,408.50 points.

ITV’s share price meanwhile is 1.68 percent up at 178.31p.

easyJet announced in a statement this morning its chief executive Carolyn McCall had advised the board of her intention to step down to become CEO of ITV. She is expected to leave the company around the end of the year, and take the helm at the blue-chip broadcaster on January 8.

“Carolyn built and led the management team that has transformed easyJet’s performance in every respect since 2010,” the budget carrier’s chairman John Barton commented in the statement. The budget airline assured investors that the search for her successor had “already commenced and the company expects to select from a strong range of candidates”.

Bloomberg quoted Daniel Roeska and Caius Slater, analysts for Sanford C. Bernstein, as saying in a note yesterday that easyJet’s next CEO must “increase focus on cost management and possible restructuring”.

“We think bringing in an external candidate, given the required qualifications, with fewer ties to the organisation and a fresh view, may be beneficial for shareholders,” they pointed out.

ITV confirmed McCall’s appointment in a separate statement, with the broadcaster’s chairman Peter Bazalgette pointing out that “in a very impressive field of high calibre candidates, Carolyn stood out for her track record in media, experience of an international operation, clear strategic acumen and strong record of delivering value to shareholders”.

ITV will pay McCall an annual salary of £900,000 and a pension allowance of 15 percent of her pay. She will further be able to participate in the group’s existing annual bonus plan up to a maximum of 180 percent of salary, and the long-term incentive plan up to 265 percent of salary.