Hugh Marks is stepping down as CEO of Nine Entertainment.
“After five successful years for Nine, I have decided the time is right for me (to) begin the process of moving on,” he told staff in an email sent after a meeting of the Nine board at the weekend.
A formal announcement will be made to the ASX on Monday.
Nine will this week start seeking internal and external candidates for the next CEO.
“I will be around to ensure a smooth transition as the business embarks on its next stage of growth,” Marks says.
Possible internal candidates include chief sales officer Michael Stephenson, Mike Sneesby, the CEO of streaming platform at Nine, and Chris Janz, chief digital and publishing officer.
The announcement comes with Nine a stand out media player in Australia, paying dividends to shareholders despite COVID-19, preparing for the launch of Stan Sports and grabbing rugby broadcast rights from Foxtel.
However, reports have surfaced recently of personal relationships with staff members. According to a report in Nine’s Sydney Morning Herald, the board discussed Marks’ relationship with former managing director of commercial at Nine, Alexi Baker.
At the Nine AGM last week, chairman Peter Costello Nine, replying to a question, said Marks had not breached any company policies when he was asked about a report in the Daily Telegraph that Marks had been in a relationship with a subordinate.
Nine does not have a policy on relationships between staff.
The Sydney Morning Herald on Saturday quoted Marks as saying: "There's a lot of gossip and a lot of that gossip is out of control ... "
Marks, in his email to staff on Saturday, says it has been a privilege to lead the company over a truly transformational period for both the media market and Nine.
“We have gone from being three separate, legacy media businesses in Nine, Fairfax Media and Macquarie Media, each with their own structural challenges, and created a business that now has a diversified revenue base across both advertising and subscription, and that has a clear growth strategy for decades to come,” he says.
“We have demonstrated the importance of great content, be that in the powerful and unique journalism we create every day, across all platforms, or in entertainment, where the shows we build become household names and engage Australians in their millions. Because at the end of the day, we are, and will remain, a content business.
“COVID-19 has also demonstrated how we are stronger together. It is clear now, that Nine’s assets across television, radio, print and digital are a unique proposition together for advertisers, but also for Nine, as we grow powerful subscriber businesses, like Stan and our mastheads, both of which are at record subscription levels.
“Trust me when I say there is no other company with the assets or strategic position of Nine.
“In particular, I want to thank our chairman Peter Costello for the extraordinary support he has given to me and to the entire business over the past five years. His commitment to us all and to our future success is without peer.
“I leave knowing that Nine has an incredibly strong management team leading it across all its businesses. And of course, a depth of passion and drive and commitment right through all of our people.
"Finally, I want to thank each of you for what you do every day. It is the ingenuity, creativity and dedication that you all bring to Nine and the Nine family which makes this place special, and which will ensure it continues to lead the market for many years to come."
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