Carolyn McCall, the EasyJet boss, is to join ITV as chief executive.
Ms McCall, who begins her new role in January 2018, had been the front runner to secure the broadcaster's vacant top job after Adam Crozier stepped down at the end of June.
She will receive an annual salary of £900,000 and a pension allowance of 15% of salary, as well as being eligible for a bonus plan up to a maximum of 180% of salary, and a long-term incentive plan up to 265% of salary.
ITV described it as "broadly the same remuneration opportunity" to Mr Crozier's.
Ms McCall will also receive awards to compensate for remuneration arrangements forfeited on leaving EasyJet.
She has headed up the low-cost airline since 2010, prior to which she was chief executive of Guardian Media Group.
"I'm really pleased to be joining ITV. It is a fantastic company in a dynamic and stimulating sector.
"I am looking forward to getting to know all of the people at ITV and helping it make the most of the amazing opportunities that it has in the future," she said.
Ms McCall has also been a non-executive director of Burberry since 2014 and sits on the board of the Department of Business, Energy and Industrial Strategy and is a Trustee at the Royal Academy.
Peter Bazalgette, chairman of ITV, said: "In a very impressive field of high calibre candidates, Carolyn stood out for her track record in media, experience of an international operation, clear strategic acumen and strong record of delivering value to shareholders. I'm delighted we'll be working together at ITV."
Ms McCall has been widely praised for her tenure at EasyJet and for raising the profile of women in business.
In 2016, she was awarded a damehood in the New Year Honours list for services to the aviation industry and decorated with France's highest merit, the Legion d'honneur.
She was presented with an OBE for services to women in business in the 2008 Queen's Birthday Honours list.
Tamsin Garrity, equity analyst at Jefferies, said: "We view this appointment as positive.
"McCall has understanding of the commercial side of the business, which complements a creative chairman at ITV, and has weathered some tougher times at EasyJet while trebling the share price."
Ms Garrity added that her time at Guardian Media Group provides her with "solid media experience" in the world of advertising, which remains the majority source of ITV's revenue.