Channel 4 chief earns £1m despite plunging profits

Channel 4 chief executive Andy Duncan will pocket £1m (€1.46m) this year – as profits slump by 70%.

At the same time, the broadcaster cut spending on current affairs, religion and education.

Duncan was paid £622,000 (€913,600) in 2006, which represented a rise of £73,000 (€107,200) on the previous year and included a £149,000 (€218,800) performance bonus.

He also accrued £375,000 (€551,000) as part of a “long-term loyalty scheme”.

Details of his pay packet were revealed today in Channel 4’s annual report.

It showed that profit has fallen by 70% to £14.5m (€21.3m) last year, which the broadcaster blamed partly on falling advertising revenue.

Channel 4 bosses warned that quality programming may be cut in response to increasing financial pressures, calling for more Government money.

Chairman Luke Johnson said: “Unless we receive some form of assistance to help us continue to adhere to our public service remit, we may be faced with a stark choice; either we will have to reduce our output of public service programming, and focus more of our schedule on commercial programmes, or see Channel 4’s finances continue to deteriorate.”

Director of programmes Kevin Lygo said US imports would be the first area to feel the pinch. The channel has scored ratings hits over recent years with the likes of Lost and Desperate Housewives.

“My preference will be to cut acquired programming. That would certainly be the first place we cut before we cut domestic commissioning,” he said.

Channel 4 was the only terrestrial broadcaster to increase its audience share last year.