Barry Diller, chief executive of IAC, faced tough questions about his compensation as he told a Delaware court yesterday that a controversial restructuring plan was intended to nurture the internet company's proposed spin-offs, rather than liberate him from the grasp of controlling shareholder John Malone.

"It was in the interest of all those invested in IAC," Mr Diller said of the plan. Later, he referred to the proposed spin-offs as "fresh, new little babies".