Pressure piles on Murdochs ahead of annual meeting

RUPERT MURDOCH and his son James have sought to keep out of the limelight since their infamous appearance before MPs in July when they tried to explain the phone-hacking scandal at the News of the World. But tomorrow in Hollywood they will be back in the spotlight at a highly-charged annual meeting of News Corp shareholders.
And if stockholders angered by the phone-hacking saga get their way, it could be the beginning of the end of Rupert Murdoch’s long association with newspapers.

The angry shareholdersPressure is growing on Rupert, James and his elder brother Lachlan to stand down from the board of the media giant that runs Fox Television, 20th Century Fox film studios and newspapers including The Wall Street Journal and, in Britain, The Times, The Sunday Times and the Sun.

In the build-up to Friday's meeting, to be held at the Fox film studios, the investor advisory group ISS has said that the phone-hacking scandal has laid bare "a striking lack of stewardship" at News Corp.

ISS blames 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".

As a result, the ISS has advised shareholders to act radically. They should vote off the three Murdochs plus 10 other directors, leaving only two of News Corp's 15-man board – recent newcomers Joel Klein and James Breyer – in place.

Another advisory group, Hermes, is also calling for all three Murdochs to be voted off the board

News Corp has said it "strongly disagrees" with the advice – but some shareholders have clearly been listening.

One of America's biggest pension funds, the California State Teachers' Retirement System, which holds more than 6m News Corp shares, has said it "believes an independent chairman could provide the leadership this board needs both now and in the future" and will make that case on Friday.

Another huge pension fund, the California Public Employees' Retirement System, says it will send officials to the meeting at the Fox Film studios to vote in person for the appointment of an independent chairman.

If Rupert Murdoch, who is chairman and chief executive, were to be voted off the board, the implications would be enormous. Many shareholders feel the company should not be in ·