Murdoch: Will he stay or will he go?

10th October 2011

Advisory firm Institutional Shareholder Services has suggested that 13 of 15 board members are removed including Rupert.

In a stinging report, it says: "Shareholders elect independent directors to protect against governance risk of self-inflicted damage to corporate reputation, viability and long-term shareholder value," ISS wrote in its report. "The independent directors, rather than embracing their central governance role, opted not to guard the guardians."

Glass Lewis another advisory firm says investors should vote off Murdoch's two sons James and Lachlan.

UK and Australian pension funds also want Rupert and James ousted from their roles at NewsCorp  following the phone hacking scandal.

The Guardian reports that the  UK's Local Authority Pension Fund wants former British Airways chief executive and News Corp director Rod Eddington to lead a restructuring without the family remaining on the board.

The Telegraph notes that the Australian Council of Superannuation Investors, which manages more than A$250bn of assets has called for News Corp to separate the roles of chairman and chief executive and to ditch Murdoch and once again remove his sons James and Lachlan along with four others.

However the chances of success remain stacked against the outside shareholders. Despite the fact the Murdoch family control only 12% of the shares, only B shares have voting powers, and Rupert Murdoch controls more than 40% of those.

Meanwhile the Independent believes that NewsCorp is retaining the services of several News of the World journalists for a new year launch of a Sun on Sunday.

Perhaps you just can't keep a good Mogul down.

More from Mindful Money:

After Murdoch Scandal: Has media investing changed for ever?

Why a great leader does not (always) make for a great business

Social media: where should you invest next?

To receive our free email newsletter sign up here.  

Leave a Reply

Your email address will not be published. Required fields are marked *