21 Oct 2011

Changes wanted on News Corp board

1:01 pm on 21 October 2011

News Corporation chief Rupert Murdoch can expect a torrid time at the company's annual meeting in Los Angeles, with disgruntled investors demanding changes to the board.

They are upset by the phone hacking scandal in Britain which forced the News of the World to close and prompted the withdrawal from a BSkyB deal at a cost of $63 million.

There were cries of nepotism over News Corp buying Elisabeth Murdoch's production company for $675 million and last week the Wall Street Journal was accused of artificially boosting circulation figures in Europe

Proxy advisory firm ISS wants 13 of the 15 directors removed and Stephen Mayne, the Australian Shareholders Association's representative on News Corp, wants five gone.

He says News Corp's defence that the current board is the most effective leadership for the company is rubbish.