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James Murdoch reappointed as BSkyB director with 95% shareholder backing James Murdoch reappointed as BSkyB director with 95% shareholder backing
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James Murdoch has been reappointed as a director of BSkyB with the support of 95% of shareholders at the company's annual general meeting.James Murdoch has been reappointed as a director of BSkyB with the support of 95% of shareholders at the company's annual general meeting.
Barring one investor labelling him as "toxic", Thursday's BSkyB AGM for 2012 experienced no repeat of the rebellion at last year's meeting in reaction to his handling of the News of the World phone-hacking scandal.Barring one investor labelling him as "toxic", Thursday's BSkyB AGM for 2012 experienced no repeat of the rebellion at last year's meeting in reaction to his handling of the News of the World phone-hacking scandal.
Making his first public appearance in the UK since April, when he stood down as chairman of BSkyB and then appeared before the Leveson inquiry into press ethics, Murdoch was oppposed by just 4.98% of company shareholders who voted. Making his first public appearance in the UK since April, when he stood down as chairman of BSkyB and then appeared before the Leveson inquiry into press ethics, Murdoch was oppposed by just 4.96% of company shareholders who voted.
A small number of shareholders withheld their vote at the AGM in central London. A very small number of shareholders – less than 0.5% – withheld their vote at the AGM in central London.
Last year a third of independent shareholders voted against Murdoch's reappointment when he was still chairman. This year's breakdown will not be officially known until later on Thursday when the voting is fully consolidated and released to the stockmarket. Last year a third of independent shareholders voted against Murdoch's reappointment when he was still chairman. In Thursday's vote, just 8.8% of independent shareholders voted against Murdoch and less than 1% abstained.
There was some criticism of Murdoch from the floor with shareholder John Marshall saying that his presence on the board was "toxic" and damaged the public view of the business as long as he remained.There was some criticism of Murdoch from the floor with shareholder John Marshall saying that his presence on the board was "toxic" and damaged the public view of the business as long as he remained.
"He clearly failed to ask questions he should have asked at News of the World over phone hacking," Marshall said. "The name of Murdoch is toxic with a large number of investors." "He clearly failed to ask questions he should have asked at News of the World over phone hacking," Marshall said. "The name of Murdoch is toxic with a large number of investors. As long as he is on the board, that will reflect on the company."
Louise Rouse, a director of FairPensions, questioning his suitability given the recent criticisms by Ofcom of his handling of the phone-hacking scandal at News International. Louise Rouse, a director of FairPensions, questioned his suitability given the recent criticisms by Ofcom of his handling of the phone-hacking scandal at News International.
"Given Ofcom's very strong criticism of his competence, what would you say to reassure shareholders concerned about this issue that James Murdoch is doing better [now]," Rouse said."Given Ofcom's very strong criticism of his competence, what would you say to reassure shareholders concerned about this issue that James Murdoch is doing better [now]," Rouse said.
She queried why Murdoch had stepped down from two non-executive directorships at other companies but did not feel it was necessary to do so at BSkyB.
"He is not at Sotheby's or GlaxoSmithKline and it is the same sort of role he is occupying at BSkyB," Rouse said. "Major institutional shareholders should have to explain why they have changed their position and feel he is suitable at Sky, especially following Ofcom's report."
Murdoch was also the chairman of News International, before stepping down and withdrawing from all of his UK management responsibilities before amove to News Corporation's New York headquarters. He remains the deputy chief operating officer of News Corp, Sky's largest shareholder, owning 39.1% of the company.Murdoch was also the chairman of News International, before stepping down and withdrawing from all of his UK management responsibilities before amove to News Corporation's New York headquarters. He remains the deputy chief operating officer of News Corp, Sky's largest shareholder, owning 39.1% of the company.
Nicholas Ferguson, BSkyB chairman, said that there had been no discernible impact on BSkyB – financial or otherwise – of Murdoch remaining on the board.Nicholas Ferguson, BSkyB chairman, said that there had been no discernible impact on BSkyB – financial or otherwise – of Murdoch remaining on the board.
"We've known James Murdoch for many, many years as chief executive and then chairman and have always seen the highest level of competence and integrity," he said. "On our judgment, he has always been a suitable member of the board and a valuable asset to the company.""We've known James Murdoch for many, many years as chief executive and then chairman and have always seen the highest level of competence and integrity," he said. "On our judgment, he has always been a suitable member of the board and a valuable asset to the company."
Ferguson said the Ofcom report never found that James had done anything wrong or been involved in a cover-up over phone hacking.Ferguson said the Ofcom report never found that James had done anything wrong or been involved in a cover-up over phone hacking.
"The board unanimously agreed he should stay as a director of the company [following the Ofcom report]," he said."The board unanimously agreed he should stay as a director of the company [following the Ofcom report]," he said.
Murdoch faced a more substantial shareholder revolt at last year's meeting AGM, when almost 26% of investors failed to back his reappointment as BSkyB chairman, with 18.76% of them voting directly against him.Murdoch faced a more substantial shareholder revolt at last year's meeting AGM, when almost 26% of investors failed to back his reappointment as BSkyB chairman, with 18.76% of them voting directly against him.
Despite Ofcom delivering scathing criticism in September of Murdoch's handling of the News of the World phone-hacking scandal at News International – stating that he repeatedly fell short of the conduct to be expected of a chief executive and chairman – the media regulator gave Sky a clean bill of health, saying the broadcaster remained a fit and proper holder of UK broadcast licences.Despite Ofcom delivering scathing criticism in September of Murdoch's handling of the News of the World phone-hacking scandal at News International – stating that he repeatedly fell short of the conduct to be expected of a chief executive and chairman – the media regulator gave Sky a clean bill of health, saying the broadcaster remained a fit and proper holder of UK broadcast licences.
BSkyB has also been refreshing its board – departures have included Random House chief Dame Gail Rebuck and the former Post Office chairman Allan Leighton – after criticism from some investors about its independence.BSkyB has also been refreshing its board – departures have included Random House chief Dame Gail Rebuck and the former Post Office chairman Allan Leighton – after criticism from some investors about its independence.
The company said on Thursday that two more directors are to be replaced. Jacques Nasser has said he will not stand for re-election and Lord Wilson has announced his intention to retire.The company said on Thursday that two more directors are to be replaced. Jacques Nasser has said he will not stand for re-election and Lord Wilson has announced his intention to retire.
Ferguson said that when the two new appointments are made the majority of BSkyB's independent directors will have joined in the last 18 months.Ferguson said that when the two new appointments are made the majority of BSkyB's independent directors will have joined in the last 18 months.
The satellite broadcaster is also understood to have waged a successful charm offensive among investor groups to convince them of the value of Murdoch's experience. He was Sky chief executive for four years from 2003.The satellite broadcaster is also understood to have waged a successful charm offensive among investor groups to convince them of the value of Murdoch's experience. He was Sky chief executive for four years from 2003.
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