04/11/2003

James Murdoch, the 30-year-old son of the Australian media mogul Rupert Murdoch, is to lead the £12 billion satellite broadcaster BskyB, 35% of which is owned by Murdoch’s News Corporation.

Yesterday’s announcement raised furore from other shareholders, who thought that the selection of James as the satellite TV’s new chief executive was not fair and that other potential candidates had not even been considered for the job. Peter Montagnon from the Association of British Insurers, one of the most powerful groups representing independent shareholders in BSkyB said: “It is difficult to conceive of an arrangement whereby a father is chairman and a son chief executive, to be structured with appropriate accountability”.
As another strong shareholders group, the National Association of Pension Funds also expressed their deep concern over the appointment, BSkyB tried to counter the investors’ criticisms by naming Lord Rothschild, as independent part-time deputy chairman of the company.
As for Rupert Murdoch, he stressed that BSkyB’s board was “unanimous in its conviction that James is the right man for the job”. His son does have experience in running a pay-TV company, as he is currently chief executive of News Corporation’s successful Star TV in Asia.
BSkyB’s annual general meeting in London on November 14 will certainly be a heated one, as shareholders will have the chance to vote on Murdoch Junior’s appointment.