I leave this great company with mixed emotions: Gavin O’Reilly

Gavin O’Reilly has resigned as chief executive of Independent News and& Media after three years in charge of the country’s largest media group.

Chartered accountant Vincent Crowley — the company’s chief operating officer since 2009 — has been appointed by the group’s board as Mr O’Reilly’s replacement.

Yesterday’s news came after an emergency meeting of the INM board, at which the “compromise agreement”, leading to Mr O’Reilly’s exit was reached.

His departure follows a fresh period of shareholder unrest and coincideswith another significant purchase of INM shares.

It transpired yesterday that 13 million shares — equating to a 2% stakeholding — were purchased by unknown investors.

It is thought that the purchase — made via Davy Stockbrokers — was by a number of individuals rather than a single investor.

Existing high-profile INM investors, including Denis O’Brien and Dermot Desmond, have been vocal about the group’s leadership over the past 12 months.

Mr O’Brien, who has built up a 22% stake in the business over the past six years, called for the removal of Mr O’Reilly as chief executive in November, saying his position had become untenable.

Last month’s publication of INM’s 2011 results was overshadowed by fresh reports that high-profile shareholders were pushing for a shake-up of the group’s board, but Mr O’Reilly said at the time that he had “a very, very strong and clear mandate” from shareholders.

However Mr O’Reilly — who has been with INM in various capacities for 19 years — yesterday said it had become clear recent shareholder tensions “were proving an unnecessary distraction for both me and the company and this was not in the best interests of the company”.

“The board and I agreed that what the company needs now is a board, management team and shareholder base that is purposefully unified and aligned for the company’s immediate challenges and for the many opportunities that exist in the future,” he said after the meeting.

He added: “I leave this great company with mixed emotions.”

His departure comes ahead of what could still be an eventful group AGM in early June. No details of Mr O’Reilly’s severance package were revealed by him or the company.

This is the second time Mr Crowley has succeeded Mr O’Reilly in an INM post. The former head of the group’s Irish operations took over as chief operating officer when Mr O’Reilly was given the top job three years ago, following his father’s retirement.

An INM employee for more than 20 years, Mr Crowley has also acted as chief executive of APN News and& Media, the Australian group in which INM holds a 30.4% stake.

INM chairman James Osbourne said Mr Crowley’s appointment had met with unanimous board approval. He said Mr Crowley is “well equipped to position the group for the challenges which continue to face the media industry”.