The Trade Union Congress (TUC) has called on shareholders to vote against the election of James Murdoch as a non-executive director of satellite broadcaster BSkyB. The TUC says that James Murdoch cannot be seen to be a sufficiently independent director of a company of which his father, Rupert Murdoch, is chairman.
The move is the latest in a long line of objections to the appointment, with some of BSkyB’s largest institutional shareholders having already warned that they will not accept the unchallenged appointment of James Murdoch as chief executive (see
BSkyB Shareholders Express Concern Over Ball Successor).
Commenting on the move, Brendan Barber, general secretary of the TUC, said: “Investors should think very carefully about the kind of messages that the succession process at BSkyB has already sent about the way companies are run, and the impression that the appointment of the chairman’s son as chief executive would generate. The TUC believes that if investors have concerns then they should send a strong signal to the company.
“We do not consider James Murdoch to be an independent non-executive director in any case and have told trustees that they may wish to consider the vote on his re-election as an outlet for concerns about the selection process.”
Media analysts have criticised Rupert Murdoch’s attempts to install his youngest son at the helm of BSkyB as nepotism. In an attempt to dampen investors’ disquiet a committee has been appointed to judge potential candidates. The committee, led by Lord St John of Fawsley, has undertaken interviews with a number of possible candidates but has yet to submit its recommendation to the board.
