Inquiry into United's part-time chairman

The Stock Exchange is planning to tighten rules on the disclosure of material changes to the role of company directors, after confirmation yesterday that Lord Stevens, the chairman of United News & Media, will work only part-time from next spring.

News of Lord Stevens' plans, revealed in an interview in the Financial Times, was the subject of Stock Exchange inquiries yesterday into whether the company should have issued a formal statement about the chairman's diminished managerial role.

United's shares rose 11p on the news, receding later in the day to close at 685p, up 7.5p. According to a senior regulator, United would have been obliged to make a statement to the market had a new rule, to be implemented on Monday, been in effect this week.

The rule will state that "any important change in the functions or executive responsibilities of a director" must be notified as soon as it is decided.

Changes to Lord Steven's job will result in a sharp reduction in his pounds 510,000 annual salary and generous expense account.

Lord Hollick, the chief executive, was believed to have been seeking such an outcome for some months.

Up until now United has consistently refused to comment publicly on the matter, even going so far as to deny the plans outright in off-the-record comments recorded by the Independent just prior to the publication of the Financial Times interview.

The Stock Exchange formally gave consideration yesterday to whether the leaking of the news constituted partial disclosure, which might have been against the rules.

Confirmation that Lord Stevens will work only part-time from May is believed to be a first step toward his eventual resignation from the company.

Sources close to United claimed last night that Lord Stevens had a "lavish lifestyle and a generous expense account".

One source said: "David Stevens knew it was time the gravy train came to an end. He was one of the last true Fleet Street spenders."

United declined to comment on the level of Lord Stevens' expenses, or on suggestions that he would be paid just pounds 150,000 a year in his part- time position. Information on his new salary would only be publicly available when the next annual report was published, a company spokesman said.

A source close to the company said that "a drop in his remuneration would be only natural in line with his changed duties".

Lord Hollick is widely viewed as the key architect of United's strategy, while Lord Stevens' role has been increasingly marginal.

Under Lord Hollick's leadership, United has recently expanded further in the exhibitions sector, with its pounds 592m purchase of Blenheim, and taken a 20 per cent stake in HTV, the ITV company, in a step most observers believe will lead to a full bid.

"The fact that the share price rose on this news is proof the market sides more with Lord Hollick than with Lord Stevens," one leading media analyst said yesterday.