Bloomberg News

Murdoch Sons Should Leave News Corp. Board, Egan-Jones Says

October 11, 2011

(Updates with closure of newspaper in fifth paragraph.)

Oct. 11 (Bloomberg) -- Rupert Murdoch’s sons, James and Lachlan, should be removed from News Corp.’s board in a shareholder vote next week, Egan-Jones Proxy Services said.

Two other directors, Natalie Bancroft and Arthur M. Siskind, should also be removed in the Oct. 21 vote, Egan-Jones, a shareholder adviser, said today in an e-mailed statement.

The directors’ lack of independence and oversight was “very publicly visible” in a phone-hacking scandal at the company’s now-closed News of the World newspaper, Egan-Jones said in the statement. Another advisory firm, Institutional Shareholder Services, yesterday recommended that 13 of the board’s 15 members, including Murdoch and his sons, be removed. Glass Lewis & Co., another advisory firm, has said the company needs a more independent board.

Murdoch holds 40 percent of the company’s Class B voting shares, making it difficult to enact board changes that differ from his wishes. Prince Alwaleed bin Talal, a friend of the Murdoch family, owns 7 percent of voting shares.

The 168-year-old News of the World was closed in July following the phone-hacking allegations.

Bloomberg LP, the parent of Bloomberg News, competes with News Corp. units in providing financial news and information.

--Editors: Donna Alvarado, Stephen West

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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