David Gyngell dispels Nine resignation rumour: ‘I want to be here beyond contract’

DAVID Gyngell plans to stay as chief executive ­at Nine Entertainment Co beyond the end of his contract in two years’ time.

Nine Entertainment chief executive David Gyngell. Picture: Renee Nowytarger

DAVID Gyngell has spoken for the first time of his future at Nine Entertainment Co, revealing that he plans to stay as chief executive ­beyond the end of his contract in two years’ time.

In an exclusive interview with The Australian, shortly after the company’s inaugural AGM, Mr Gyngell decided to address the persistent resignation rumours in media circles and said he planned to stay on, in a move that will see him extend his run as the longest-­serving boss in the Australian media sector.

“I still have another couple of years to go and, unless I don’t know something, I intend to see those out and work hard for another (contract),” Mr Gyngell said.

“I have no intentions of leaving the company before my contract is up. Hopefully I would like to go ­beyond that, but that’s a board and shareholders decision.”

The terms of Mr Gyngell’s contract have been the subject of fervent industry speculation this year, but The Australian can reveal he signed a new three-year contract when the media company listed on the Australian Securities Exchange in December.

He is subject to a 12-month ­notice period and is not permitted to give notice until October 1 next year. Mr Gyngell has been chief executive since November 2010 in his second stint at Nine. He quit Nine abruptly in 2004 soon after Kerry Packer hired Sam Chisholm back to the network, effectively undermining his position.

Frustrated then by “multi-layered management systems”, he returned after private equity owners took control years later.

After being filmed in a public brawl with his long-time friend and gaming mogul James Packer in Bondi earlier this year, Mr Gyngell’s future at Nine came into sharp focus. He did not make a presentation at last week’s AGM, adding to the speculation.

Nine chairman David Haslingden and chief operating officer Simon Kelly addressed the shareholders.

Mr Haslingden told The Australian it was Mr Gyngell’s decision not to present, but dismissed rumours of his early departure.

“There have been absolutely no discussions or indications about David leaving the company at any time,” Mr Haslingden said.

The former president and COO of Fox Networks Group said he expected Mr Gyngell to be at Nine for “a long time, not a short time” and said there was “complete unanimity at a board level”.

“He loves it and he’s very good at it,” Mr Haslingden said. “I’m not saying there are not other things he wouldn’t be good at, but I think he is very happy where is. I’ve worked with a lot of TV executives and he’s right up there.”

Mr Gyngell’s contract makes him the highest-paid Australian media executive this year, pulling in $19.5 million.

His package included $14m of incentives for leading Nine back to the public markets after a ­disastrous period in private equity ownership that saw the company lose its ratings crown and struggle under the weight of buyout debt.

It also included a $2.5m cash bonus linked to Nine’s initial public offering, $1.59m of pre-IPO share rights and $10m of IPO-­related share incentives.

The former surf shop owner collected $2.6m in base pay, and a bonus took his total pay to $5.5m.

The remuneration report was overwhelmingly approved by shareholders at last week’s AGM.

When asked about the Bondi incident, Mr Haslingden told shareholders he had dealt with the incident “appropriately”.