Former Ten boss Grant Blackley appointed as new CEO of Southern Cross Austereo
Blackley
Former Network Ten CEO Grant Blackley is the new CEO of Southern Cross Austereo (ASX: SCA) replacing Rhys Holleran who announced he was quitting earlier this month.
Blackley, who will be appointed to the role on a $1.05m salary with a package additional bonuses, will be charged with turning around SCA’s flagging fortunes, particularly in the radio space.
“I have had the opportunity to observe Grant in his various industry roles over some time and I have a great deal of respect for his expertise and achievements in media sales, strategy and executive team development in particular,” said SCA chairman Peter Bush.
Blackley was CEO of the Ten Network until 2011 when he was fired by the board following unexpectedly poor profit numbers for the first half of the financial year.
In the announcement Blackley acknowledged the challenges facing SCA.
“Media is a tough industry but it is also a highly creative and dynamic sector and with the right vision, strategies and leadership I believe Southern Cross Austereo has a strong future,” said Blackley.
SCA owns regional TV broadcasters and radio networks Hit and Triple M, and has been at the centre of continuing speculation about a takeover from Nine Entertainment Co.
Holleran’s departure came after a turbulent 18 months for SCA, which saw profits tumble last year as its previously top-rated radio station 2DayFM crashed to the bottom of the ratings following the loss of Kyle Sandilands and Jackie Henderson to rivals KiisFM.
Nic Christensen
The ASX statement:
The Board of Southern Cross Media Group Limited (ASX:SXL) (“Southern Cross Austereo”) has today appointed Mr Grant Blackley as CEO and Managing Director effective Monday 29th June 2015.
Mr Blackley is a highly experienced and well regarded media industry executive. His media industry career spans the past 30 years during which time he served in senior leadership roles at TEN Network Holdings Limited (TEN Network), finally as CEO from 2005 through to 2010.
During 24 years with the TEN Network Mr Blackley served in key roles in media sales, digital media and multi-channel program development as well as being responsible for group strategy, acquisitions and executive development programs.
He is currently CEO of the highly successful national restaurant group, The Keystone Group (“Keystone”) and Founder and CEO of Four Seasons Media (“Four Seasons”), a diversified media consultancy, content owner, investor and management group. Mr Blackley also has a financial interest in RGM Artists (“RGM”), Australia’s leading talent agency.
Southern Cross Austereo Executive Chairman, Mr Peter Bush, said the Company’s Board is delighted that Mr Blackley has accepted the appointment.
“I have had the opportunity to observe Grant in his various media industry roles over some time and I have a great deal of respect for his expertise and achievements in media sales, strategy and executive team development in particular,” Mr Bush said.
“My Board colleagues have also been very impressed through our discussions with Grant over recent weeks.
“With Rhys Holleran stepping down recently and due to leave Southern Cross Austereo after 18 years in various leadership roles, it was very important to us that we recruit an executive with extensive media industry experience and proven capacity in team development and talent management.
“Reinvigorating Southern Cross Austereo’s sales strategy, programming and talent management is a key requirement of the Board and we are confident that Grant is the right person to lead that process from here.
“In addition, with the potential opportunities and challenges that could flow from mooted media ownership rule changes in future, Grant’s extensive media industry knowledge and network will be a distinct advantage,” Mr Bush said.
Mr Blackley said the opportunity to lead Southern Cross Austereo was too good an opportunity to refuse.
“Since leaving the TEN Network, I have spent time enjoying a diverse range of business challenges but the more I thought about the opportunity to join the Southern Cross Austereo team, the more interested I became.
“This is a company with great brands, a highly engaged group of talented people and the scope to build additional and new streams of sustainable revenue and earnings.
“Media is a tough industry but it is also a highly creative and dynamic sector and with the right vision, strategies and leadership I believe Southern Cross Austereo has a strong future,” Mr Blackley said.
Mr Blackley will commence his duties at Southern Cross Austereo on Monday 29th June and will be relinquishing all other management responsibilities with Keystone, Four Seasons and RGM Artists prior to that time.
As previously announced, Rhys Holleran has already stepped down as CEO and will conclude his employment with Southern Cross Austereo at an agreed date.
Mr Bush will step down from his role as Executive Chairman at the same time as Mr Blackley commences as CEO. Mr Bush will resume his former role as Non-Executive Chairman of the Southern Cross Austereo Board from that time. For the period as Executive Chairman, Peter Bush will be paid an additional $51,136, that being an additional $31,500 per month.
The key terms of Mr Blackley’s employment contract with Southern Cross Austereo are outlined in the attached Summary of Material Terms.
Key terms:
Position: Chief Executive Officer and Managing Director
Commencement date: 29 June 2105
Term: Until terminated by either party
Total Fixed Pay: $1,050,000 per annum (inclusive of base salary, superannuation contributions, director’s fees and any fringe benefits), subject to annual review – expense allowance for work related items also provided.
Short Term Incentive Plan: Eligible to participate in the Company’s short term incentive plan, up to a maximum STI of $500,000 subject to satisfaction of STI conditions set by the Company from time to
time – reviewed annually
Long Term Incentive Plan: Eligible to participate in the Company’s long term incentive plan, up to a maximum LTI of $300,000 subject to satisfaction of LTI conditions set by the Company from time to time – reviewed annually.
Termination without cause: Either party may terminate the agreement on 6 months notice (with provision for payment in lieu of notice).
Termination with cause: The Company may terminate the agreement without notice if he engages in serious misconduct; is grossly negligent in the performance of his duties; commits a serious or persistent breach of the agreement; commits an act, whether at work or otherwise, which brings the Company or the group into disrepute; or is convicted of an offence punishable by imprisonment.
Redundancy: If his employment is terminated by the Company by reason of the circumstances of the Company changing such that his position as Chief Executive Officer and Managing Director is no longer required, or in circumstances where his duties or reporting structure are varied in a manner which materially diminishes his status or responsibilities, he is entitled to a payment equivalent to 12 month’s total Fixed Pay.
Restrictions: There are 6 month restrictions post employment on working for a competitor, inducing employees to leave the Company and persuading the Group’s clients and suppliers to cease or reduce business.
Many congrats Grant
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well done Dog. About time you got back into it. Got your challenges well documented but you will get it right in time.
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