The directors of BSkyB have written to shareholders, urging them to back under-fire chairman James Murdoch. Shareholders will vote on whether Murdoch should continue in his BSkyB role at the pay TV operator’s AGM, which is scheduled for next Thursday.
One institutional BSkyB investor, the Association of British Insurers, has publicly expressed its concerns, noting that some market watchers were worried about governance issues. However, BSkyB deputy chairman Nick Ferguson wrote in his letter to investors that Murdoch has the respect of senior management, is backed by the whole of the board and is doing a “first class job” in his role at the pay TV company.
Ferguson added that the continuing scandal surrounding Murdoch, which concerns the role of News International in the newspaper phone-hacking scandal, has not impacted Sky’s operational performance or share price.
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