News Corporation: Fazed and refused

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News Corporation






PRESUMABLY News Corporation chose to hold its annual shareholder meeting on October 16th at its Los Angeles film studio to show off the profitability of its entertainment unit. But the location must have also reminded investors of the Hollywood-like drama dogging the media company over phone-hacking and bribery at News of the World, a British tabloid owned by News Corporation until it was closed last year.
As if they needed reminding. Shareholders arrived at the meeting ready to challenge Rupert Murdoch, News Corporation’s octogenarian boss, about the company’s corporate governance. Many investors, such as CalPERS, America’s largest public-pension fund, complain that he serves both as chief executive and chairman; that executive compensation is too high; that a dual share-class structure disadvantages independent shareholders; and that the board of directors is too passive. Mr Murdoch’s sons, James and Lachlan, and his grandson’s godfather, Viet Dinh, are all board members.
In the event no shareholder’s proposal to end ...