After weeks of speculation, rumours have been confirmed, and James Murdoch, 30-year-old son of News Corp chairman Rupert Murdoch, is to be the new CEO of leading pay-TV company BSkyB. News Corp controls 35.4% of BSky B.
But will there be a shareholder revolt about this over-close relationship? In several instances recently, UK shareholders have successfully challenged board decisions.
A Nomination Committee has seen several candidates, but still came up with James Murdoch as their favourite. Was it a fix all along? To calm investors fears, the highly-influential Lord Rothschild has been appointed deputy chairman of BSkyB.
In a statement, Rupert Murdoch added: “The Board and I are pleased that the Nomination Committee has completed its task and it is unanimous in its conviction that James is the right man for this job.”
Some investors demanded further assurances about the selection process. Peter Montagnon, head of investment affairs at the Association of British Insurers, said Mr Murdoch’s appointment would need “a really compelling explanation”.