Rupert Murdoch is facing calls from Australian pension funds to step down as chairman of News Corp, as a shareholder revolt spreads to the media magnate’s native country.
The Australian Council of Superannuation Investors (ASCI), which represents funds with more than A$350bn (£222bn) in assets, has become the latest body to demand that the 81-year old relinquish the chairmanship of the company he founded. The pressure is mounting on Mr Murdoch to dilute the control he wields in the wake of the phone-hacking scandal that forced News Corp to close The News of the World newspaper and has left it facing multiple investigations.
“ASCI recognises that some change has occurred at the board level in 2012, however it remains paramount that News Corp has a truly independent board, both independent of management and family,” said Ann Byrne, the group’s chief executive.
The billionaire will face the renewed challenge to his grip on the company at News Corp’s annual shareholder meeting in Los Angeles later this month. Like UK pension fund Hermes earlier this week, the ASCI is putting its muscle behind a resolution that will be presented at the meeting.
News Corp’s board was the target of criticism by corporate governance critics before the phone-hacking scandal, and the company is adding new faces to its roll of directors. Former Colombian president Alvaro Uribe and Elaine Chao, who worked for former US president George W Bush, have both been nominated.
The ASCI is also recommending its members vote down News Corp’s renumeration report for top executives, as well as its dual-class share structure. The latter ensures that the Murdoch family controls almost 40pc of the voting rights at the company.
News Corp’s board has advised shareholders to vote against the plan for an independent chairman, and Mr Murdoch is expected to give a robust defence of his dual role as chairman and chief executive when he takes the stage at the meeting.
Although Mr Murdoch is now a US citizen, News Corp remains a major media company in Australia. Its sharesare also listed in Sydney.
