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NewsCorp shareholders advised to fire Murdochs
Business digest: America’s largest advisory firm suggests board clean-out following phone hacking scandal
THERE IS growing pressure for Rupert Murdoch and his son James to step down from their respective positions as CEO and deputy chief operating officer of NewsCorp following a report by the largest investor advisory group in the US, Institutional Shareholder Services (ISS).
The ISS said this year's phone hacking scandal had "laid bare a striking lack of stewardship and failure of independence". It blamed the board for failing to draw a line under the issue, which has "now resulted in enormous costs – financial, legal, regulatory, reputational and opportunity – for the shareholders the board ostensibly serves".
ISS has advised shareholders to vote off 13 of the company's 15 board directors, leaving only Joel Klein and James Breyer who have each been there only a few months. Their suggestions follow other similar calls from firms such as Glass Lewis.
NewsCorp said it "strongly disagrees" with the advice, and accused the group of "disproportionate focus".
Read a full report at The Guardian. ·
