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Sky deal: James Murdoch faces shareholders at annual meeting | Sky deal: James Murdoch faces shareholders at annual meeting |
(about 9 hours later) | |
James Murdoch is poised to defend his position as Sky's chairman at its annual shareholder meeting on Thursday. | James Murdoch is poised to defend his position as Sky's chairman at its annual shareholder meeting on Thursday. |
A trio of advisory firms have called on shareholders to vote against his re-election, objecting to Mr Murdoch's position as chairman of Sky and chief executive of 21st Century Fox. | |
Fox is attempting to buy Sky, which investors argue presents a conflict of interest for Mr Murdoch. | |
One investor, Royal London criticised the dual position as "inappropriate". | |
However, a Sky spokeswoman said Mr Murdoch was "uniquely well-placed" to be chairman, saying he had "deep knowledge of the global media industry". | |
Royal London, which owns a stake worth £31m , has raised its concern over Mr Murdoch's position. | |
"Minority shareholders at Sky would be better served by a truly independent chairman," said Ashley Hamilton Claxton, the firm's corporate governance manager. | "Minority shareholders at Sky would be better served by a truly independent chairman," said Ashley Hamilton Claxton, the firm's corporate governance manager. |
"Independent oversight of the board is particularly important given Fox's ongoing bid to acquire Sky." | "Independent oversight of the board is particularly important given Fox's ongoing bid to acquire Sky." |
The Institute of Directors supports that view. Its director general, Stephen Martin said: "The issue is the lack of independence. James is in a difficult situation because he is currently chief executive of the controlling shareholder and also he's the chairman of Sky so there is a conflict, potentially, there." | |
Three advisory groups - Institutional Shareholder Services, Glass Lewis and Pirc - are urging shareholders to vote against Mr Murdoch's re-election and executive pay at the company. | |
Royal London's Mr Claxton said the current remuneration arrangements were "unnecessarily complex" and could lead to "unacceptably high" levels of executive pay. | |
Sky's spokeswoman said: "We have one of the lowest levels of fixed pay in the FTSE 100 and shareholders have continuously voted in favour of the policy since 2014." | Sky's spokeswoman said: "We have one of the lowest levels of fixed pay in the FTSE 100 and shareholders have continuously voted in favour of the policy since 2014." |
More than 28% of shareholders voted against Mr Murdoch's comeback as chairman last year, four years after he stood down from the position in the wake of the phone-hacking scandal at the News of the World. | More than 28% of shareholders voted against Mr Murdoch's comeback as chairman last year, four years after he stood down from the position in the wake of the phone-hacking scandal at the News of the World. |
Profits up | |
Fox's bid to buy the 61% stake in Sky which it does not already own is now the subject of a Competition and Markets Authority investigation. | Fox's bid to buy the 61% stake in Sky which it does not already own is now the subject of a Competition and Markets Authority investigation. |
Telecoms regulator Ofcom earlier has said the deal risks giving the Murdoch family "increased influence" over the UK's news agenda and political process. | |
Sky's latest results showed sales in the three months to 30 September - the first quarter of its financial year - rose 5% to £3.3bn with underlying earnings up 11% to £582m. | |
The company added 160,000 new customers in the quarter, which was up more than 50% than a year earlier. |