INDEPENDENT NEWS & Media (INM) announced a major reshuffle of its board yesterday, including the resignation of chief executive Sir Anthony O’Reilly and a reduction in the number of directors from 17 to 10.

Sir Anthony, who has been a director of Independent News & Media (INM) since 1973 and its chief executive since 2000, will step down in May and will be replaced by his son Gavin O’Reilly, the current chief operating officer.

In a statement yesterday, the company said that three new directors – Leslie Buckley, Paul Connolly and Lucy Gaffney – have been co-opted on to the board with immediate effect.

In its daily briefing, Goodbody Stockbrokers noted that these new appointments are significant as they are all affiliated with the company’s second-biggest shareholder, Denis O’Brien, since his early days with Esat Telecom. Mr Buckley is vice-chairman of Mr O’Brien’s Caribbean-based phone group Digicel, and is currently chairman of that group.

Lucy Gaffney is chairwoman of Communicorp Group, Mr O’Brien’s media holding group in Europe, while Paul Connolly is the chairman of Connolly Corporate Finance and a long-time associate of the businessman.

Over the course of the next three months, in the lead-up to IN&M’s annual meeting on June 12th, a total of nine directors – two executive and seven non-executive – will step down from the board.

These include two of Sir Anthony’s sons: Tony O’Reilly jnr, who is chief executive of Providence Resources, and Cameron O’Reilly, chief executive of Bayard Capital Partners.

Also stepping down as directors are Vincent Crowley, chief executive of IN&M’s Irish unit, and Ivan Fallon, chief executive of INM in the UK.

The other directors set to resign are Bernard Somers, Peter Cosgrave, Charles Daly, Maurice Hayes and Ivor Kenny.

Following the changes, the new 10-member board will comprise Gavin O’Reilly, Dr Brian Hillery who is to remain on as chairman, chief financial officer Donal Buggy, Ken Clarke, Baroness Margaret Jay, Brian Mulroney and Frank Murray.

In a statement yesterday, IN&M said that the resignations and appointments were “consistent with the board’s stated policy of achieving best practice in all matters relating to corporate governance”. Last year Mr O’Brien commissioned a report that criticised the board of INM for being too large and have too few independent directors.