Some of BSkyB’s largest institutional shareholders have warned the satellite broadcaster that they will not accept the unchallenged appointment of James Murdoch as chief executive.
Reports suggest that ten of BSkyB’s biggest shareholders have urged its board of senior independent directors to ensure an ‘impartial’ succession to Tony Ball, who is stepping down after four years at the company’s helm (see
Tony Ball To Step Down As BSkyB Chief).
The shareholders are understood to have called an emergency meeting yesterday, amid concerns over possible nepotism should BSkyB chairman, Rupert Murdoch, attempt to put his 30 year-old son in charge of the company.
Murdoch also chairs News Corporation, the American media group that owns more than 35% of the UK satellite broadcaster’s shares. He is widely believed to favour his son’s succession to the chief executive’s role.
James Murdoch became a non-executive director of BSkyB earlier this year and is currently head of News Corporation’s Star TV subsidiary in Asia. Shareholders are anxious over a potential conflict of interests should he be appointed to succeed Tony Ball.
City investors have offered a gently positive reaction to the announcement of Ball’s departure after BSkyB announced that the search for a new chief executive will be overseen by its nomination committee under the leadership of senior independent non-executive director, Lord St John of Fawsley (see Sky Shares Show Small Rise On News Of Ball’s Exit).
Meanwhile, Ball is understood to have signed a range of comprehensive ‘noncompete agreements’ and a lucrative three-year consultancy deal to prevent him working for any of BSkyB’s rival in the foreseeable future.
According to The Times, Ball will now be unable to join or advise competing pay-TV or free-to-air service in the UK. He will also be prevented from advising the Premier League over football rights for the next broadcasting contract.
Ball caused a stir at the recent International Television Festival in Edinburgh by suggesting that the BBC should be forced to sell its most popular programmes to rival commercial broadcasters and concentrate more on its public service obligations.
