Tim Worner quits as Seven West CEO, to be replaced by James Warburton
It was agreed only last night that Tim Worner would quit as Seven CEO, and Kerry Stokes didn’t want to “drag it out”.
Seven West Media chairman Kerry Stokes said he and Tim Worner only decided on the CEO’s resignation last night and he directed the board to install James Warburton as the new boss immediately rather than “dragging it out”.
Mr Stokes was speaking after the announcement that Mr Worner, Seven’s CEO for six years, would be replaced immediately by former Network Ten and APN Outdoor boss, James Warburton.
“All parties agree now is the time for change,” Mr Stokes said in a statement to the market.
Speaking to The Australian after the announcement, Mr Stokes said he had been in talks with Mr Worner this week and maintained the pair had “mutually” decided last night he would accept his resignation, saying the company would need to focus on “additional forms of revenue”.
“Tim and I had a couple of long discussions last week about our position and where we were going in the future and I decided last night I would accept his resignation,” Mr Stokes said.
“Not easily, but I think the final consensus was we needed to focus on additional forms of revenue and improving our revenue base as well as improving our production,” he told The Australian.
Seven West Media’s shares surged after the announcement and at 12.15pm (AEST) were up 10.67 per cent to 41 cents, returning the company’s market capitalisation to more than $600 million, after yesterday slumping to a two-decade low of 37 cents.
Asked why the company didn’t wait until after its financial results next Tuesday to make the decision, Mr Stokes said the decision needed to be done “quickly” rather than dragging it out.
“On my recommendation the board appointed James. We were very lucky to have James available as he was to be able to step in.
“We made the decision it was better for everybody it could happen quickly rather than dragging it out.”
Mr Stokes dismissed any suggestion the Amber Harrison sex scandal that engulfed the station in 2016 and 2017 had contributed to Mr Worner’s demise, saying the CEO had worked incredibly hard in the role for the last two years and it “grinds down” the best of executives.
“I think Tim has been a really great contributor to the company for the last 25 years and the last six or so as CEO.
It’s a very demanding job. It grinds down the best of people. I’m not suggesting he had been ground down. He certainly had been putting in onerous hours and conditions because he cared so much, and it was just time to refocus the company.
“We agreed mutually that was the best thing to do,” Mr Stokes said.
The announcement marks a return to the network for Mr Warburton, who led Seven’s sales division until 2011 before moving to Ten, and comes ahead of Seven’s full year financial results next week.
Mr Warburton told The Australian the situation unfolded “very quickly” in the last few days, saying there had been “initial talks” that allowed him take the top job very quickly.
“From my perspective it happened very quickly. We had initial discussions about it and to me it was a complete no-brainer. The eight years I spent here were some of the most enjoyable of my career.”
Mr Warburton denied the decision was hastened by poor results expected to be handed down on Tuesday.
“The company reaffirmed guidance, so really it’s a matter of succession planning,” Mr Warburton said.
Mr Stokes said earlier the new CEO would “reinvigorate the team”. He also described Mr Worner as a “tireless leader” who had committed more than two decades to Seven across various leadership roles.
Mr Stokes said of the announcement: “In reviewing the requirements for the company, the board has been considering the right mix of skills and experience required to take advantage of opportunities and accelerate into its next phase of growth.”
Mr Warbuton has held a number of senior roles since his departure from Seven in 2011, including Network Ten boss, chief executive of Supercars and of APN Outdoor.
Last year, Mr Warburton facilitated the $1.12 billion sale of APN Outdoor to French outdoor ad operator JCDecaux. Mr Warburton has since bought personal stakes in outdoor entity Shopper Media, as well as Australian Racing Car Group.
Mr Warburton’s exit from Seven to lead Network Ten in 2011 led to a legal dispute over his “non-compete” clause.
Mr Warburton was given a year to turn around Ten before he was sacked.
Mr Stokes said it was an “exciting time” to welcome Mr Warburton back to Seven.
“James has extensive experience in the industry with knowledge across media, advertising, sports administration, marketing and particularly sales.
“His passion and energy will reinvigorate the team. We look forward to the contribution he will make.”
Mr Warburton said he was “excited” about the new opportunities.
“The foundation of the business is a powerful combination of assets underpinned by outstanding content from Seven Studios, News and our partners in AFL, Cricket, horse racing and the Olympic Games,” Mr Warburton said.
Mr Warburton will receive a basic $1.35 million salary, considerably less than the $2.44 million in fixed remuneration paid to Mr Worner, according to Seven West’s 2018 annual report.
But Mr Warburton will have the opportunity to earn short-term bonuses of up to $2 million plus additional long-term bonuses.
Mr Worner, who led programming at Seven during the David Leckie era before taking over as CEO, thanked Mr Stokes and the board for “ongoing support and counsel”.
“It’s with mixed emotion that I tender my resignation,” he said.
“However Seven — a company I love — is a very different company from the one I joined 25 years ago. It’s changed faster than ever in these last few years and that’s down to the hard work of the best team in the business.”
Mr Worner has been with Seven for 25 years and helped engineer last year’s high-profile grab of cricket from the Nine network, with Seven paying $450 million over six years to broadcast all home Test matches and 43 Big Bash League games.
The executive movements at Seven West Media follow a profit downgrade in May, when the media group blamed soft advertising market conditions and uncertainty around the federal election for a lower-than-expected profit.
Seven West Media owns a number of businesses, including West Australian Newspapers and Pacific Magazines.
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