In a statement to the ASX, Roger Corbett, the chairman of Fairfax Media said the board initiated discussions with McCarthy about the commitment and energy required to drive the performance of the business over the next 3-5 years and the implementation of the recently announced strategic plan.

Corbett said, “Brian did not believe he could make a commitment for the next 3-5 years. We agreed that now, at the beginning of the implementation of the plan, it was the appropriate time for the leadership change.”

Commenting on his departure, McCarthy said he had committed to leading the development of the new strategic plan and having completed that, discussed with the board whether he could deliver at the capacity needed in the coming years.

He said, “Quite simply I decided I could not commit to the time required by the board. Fairfax is one of Australia’s greatest media companies and will be into the future. I will take a break and I look forward to pursuing new business opportunities in the future.”

Greg Hywood, currently a nonexecutive director, has assumed the role of acting chief executive while a global executive search is conducted.

According to the board Hywood is one of Fairfax’s respected former executives. Corbett said, “Greg brings to the board, and now this role, deep editorial and commercial experience. We are in a fortunate position to have someone of his calibre acting in this role.”

A Walkley Award winning journalist, Hywood has held a number of senior management positions at Fairfax including publisher and editor in chief of each of The Australian Financial Review, The Sydney Morning Herald/Sun Herald and The Age. He also held the position of Group publisher Fairfax magazines.

In bidding McCarthy farewell, Corbett added, “The board would like to acknowledge the leadership role Brian played steering the company through the global financial crisis, his success in driving cultural change and his stewardship of the development of the strategic plan.

“Brian has set the company up for a successful future and we thank him for his contribution.”

McCarthy’s exit arrangements are in keeping with the terms of his contract.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter