Exasperated ITV calls off talks with Tony Ball

Former BSkyB boss Tony Ball appears to have talked himself out of one of the biggest jobs in television. ITV has ended negotiations aimed at installing him as its new chief executive – apparently because he was making too many demands and attempting to choose his own overseer.

Michael Grade stepped down as chief executive of the troubled commercial broadcaster earlier this year. He moved sideways into the role of executive chairman so that he could stay in charge of ITV until a new chief executive was found.

That plan is now in tatters after last night's decision by the ITV board. Ball had been in negotiations for three weeks, and a basic salary agreed. However, an incentive scheme under which Ball could receive £20m over five years if he met all his targets, and severance payments in the event of his contract being terminated, proved to be sticking points.

Apparently the final straw was Ball's opposition to the board's candidates to replace Grade as chairman. He is believed to have objected to Sir Crispin Davis, who is quitting as CEO of Reed Elsevier – and the ITV board could not stomach a chief executive choosing the man who would be expected to hold him to account.

With Ball now out of the picture, Grade will continue as ITV boss until a new, non-executive, chairman is found. The non-executive chairman would then take on the search for a new chief executive – after which Grade would finally step down, before the end of the year, he hopes.

The strongest candidates for chief executive now would appear to be ITV's chief operating officer John Cresswell and its director of television, Peter Fincham.  ·