Murdoch keeps it in the family
James Murdoch was nominated as satellite broadcaster BSkyB’s new chief executive yesterday, risking the wrath of disgruntled shareholders.
With media mogul Rupert Murdoch as Sky’s chairman and his 30-year-old son at the helm, shareholders are worried they will see their interests being ridden roughshod over by the News Corporation team.
Mr Murdoch will have to convince shareholders of the merits of the move on November 14th at Sky’s annual general meeting in London.
There, shareholders will vote on James Murdoch’s appointment.
Shareholders are concerned that BSkyB’s independence and resources will be subsumed under News Corporation’s global operations.
Mr Murdoch said his son was the “best man” for the job.
James Murdoch is currently CEO of News Corp’s Star TV operation in Asia.
There are rumours that when Rupert Murdoch finally steps down, News Corp will be divided between James and his brother Lachlan, who will both control television and newspapers respectively.
The Association of British Insurers said it had “serious corporate governance concerns that these changes do not appear to address.”
Peter Montagnon, head of investment affairs at the ABI, said: “I think the real problem here is that this company is a large company and 65 per cent of the shares are held by interests other than those of Rupert Murdoch.”
“We’ve always been concerned that it should be run in the interest of all shareholders.”
BSkyB shareholder Andrew Neil said last night: “We all know that he wouldn’t have this job if his name wasn’t Murdoch, he’s got this job because of his genes not because of his abilities.
“He is now in charge of a £13 billion plc which Mr Murdoch doesn’t own, he owns 35 per cent of it, the rest of us own the majority of it.
“What this means it that no matter how smart you are, no matter how good you are at BSkyB, if your names not Murdoch you don’t get the top job.”
