Fairhead will remain as chair of the broadcaster’s governing body, the BBC Trust, until it is abolished early next year and replaced by a new board, with further details to be announced by the government Thursday.
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RONA Fairhead has stepped down as chairman of the BBC Trust after deciding against reapplying for the role she was asked to continue in for a further four years just five months ago.
Diane Coyle, a former Treasury adviser and vice-chair to Fairhead on the trust, said: “I think it is an extraordinary turn of events so late in the day to change the arrangement for the transition”.
The BBC chief says she will work in private sector instead, which she says she had “always planned to do after my existing term ended in 2018”.
“The Prime Minister strongly encouraged me to take part in the new appointment process, for what would be a new four year term as BBC Chairman”.
BBC content would be regulated by OFCOM and its books by the National Audit Office – subjecting the organisation to outside scrutiny for the first time.
She said: “I took on the leadership of the Trust to help stabilise, strengthen and develop the BBC following a very hard period in its history”. She was originally expected to be confirmed as chair of that new board, but May on Tuesday told her she would have to reapply.
Fairhead will not be seeking any notice period, ex gracia or other such payments, said a spokesperson for the BBC Trust. On behalf of all the staff, I’d like to thank her for that and wish her the very best for the future.
Ms Fairhead hit the headlines previous year when it emerged she had been paid £10,000 a day to provide consultancy for HSBC bank. “I believe the draft Charter will secure the strong, confident and independent BBC that the public want and deserve”.
Fairhead, a former CEO of the Financial Times Group, was appointed to a four-year term as BBC chair in October 2014.
The lack of transparency over the process led to MPs on the culture, media and sport select committee calling for Fairhead’s “unusual” appointment to be nullified, and government sources said Mrs May had taken heed of the committee’s advice.
Fairhead, who heads the BBC Trust, the corporation’s current regulator, said she would not be putting her name forward to become chair of a new governing board that will come into existence in the New Year.
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BBC director general Tony Hall also released a statement in reaction to Fairhead’s announcement.
