Head of DirecTV’s U.S. Unit Resigns

50

The president and chief executive of DirecTV Group Inc.’s U.S. subsidiary resigned on Monday, the company said.


Mitch Stern had been president and chief executive of DirecTV Inc. since the satellite broadcaster’s takeover by media giant News Corp. Inc. was completed in December of 2003. His salary was $2.08 million, according to Securities and Exchange Commission filings, and his 2004 bonus was $2 million.


The company said it would not replace Stern. Chase Carey, chief executive of the DirecTV Group Inc., will take over Stern’s responsibilities, consolidating his control of the company. DirecTV Group’s holdings include DirecTV Inc., DirecTV Latin America and a 50 percent stake in broadband satellite provider Hughes Network Systems.


In January, DirecTV Group Inc. reported disappointing fourth quarter results that included a 5 percent increase in subscriber acquisition costs to $669 per new customer, and a projection for fewer new subscribers in 2005 1.25 million to 1.5 million compared to the 1.75 million gained in 2004.


Stern was a former executive at News Corp. Division Fox Television Stations. He was moved to the newly acquired DirecTV in an effort to encourage synergies between its units. Carey was appointed to head DirecTV at the same time.


Under News Corp. control, DirecTV has shed assets, building up a cash balance of $2.8 billion. The company has said for months that its asset sales reflect a commitment to focusing on its core business of satellite television.