UPDATE, 11:25 AM: A few more odds and ends from the News Corp shareholders meeting that just concluded on the Fox lot: Lachlan Murdoch — Rupert Murdoch‘s son, and a board member — didn’t show….One shareholder asked Rupert whether he’d consider adding a liberal columnist to The Wall Street Journal’s op-ed page. “We don’t interfere” with the editorial side of the operation, he said. He added that the opinion editor is the same one who served before he bought the paper in 2007, “so there’s no change.”…Board member Andrew Knight answered a question about why directors subtracted company costs related to the hacking scandal for the profit figures they used to calculate executive bonuses. Had the costs been included, they could have reduced the bonuses by as much as 5%, he acknowledged….Questioned about his frequent and often controversial comments on Twitter, Murdoch delivered the response he frequently offers his critics. “When you buy the stock, you know what the company is,” he said. “If you don’t like it, don’t buy the stock.”…No questions about, or mention of, reports that James Murdoch might take control of Fox Broadcasting and several cable networks — or about the exit payment for indicted former News International chief Rebekah Brooks.
Related: News Corp Critics Win Symbolic, But Not Actual, Victories In Shareholder Votes
PREVIOUS, 10:44 AM: News Corp critics who want to dilute Rupert Murdoch’s power had their chance to speak during the company’s annual shareholders meeting on the Fox lot — after the CEO announced that their proposals had been voted down. Julie Tanner of Christian Brothers Investment Services said that it was a “conflict of interests” for Murdoch to serve both as CEO and board chairman. She called the reforms in News Corp’s ethics policies “timid” and warned that without structural changes scandals like the hacking and bribery ones in the UK “will cloud the company for the foreseeable future.” Murdoch barely paid attention to Tanner, but he locked eyes with Ian Greenwood of the UK Local Authorities Pension Fund when he advocated stripping Murdoch of the chairman role. “We want to thank you very much for making us a lot of money,” he said speaking to Murdoch directly, “but this won’t go away as an issue.” Greenwood added, “I’d urge you reconsider the issue .. give investors a timeline in the public arena.” Murdoch said that he and his family are aligned with other shareholders who want to “build a great company.”
PREVIOUS, 10:23 AM: The CEO kicked off his company’s annual meeting saying that News Corp has “acknowledged the serious wrongdoing” in the UK from the hacking and bribery scandals. “We’ve had to work hard to make amends. Very hard.” He noted that General Counsel Gerson Zweifach has led an effort to prevent further scandals by clarifying ethical standards and training and monitoring employee activities. “We have modernized our entire system of compliance from top to botto.m …We can fix any problem by identifying it early.” Murdoch added that the problems in the UK “were not found in our other publications.” He pivoted to note the company’s successes, including the more than 45% increase in the stock value over the last 12 months. He also talked up plans to divide News Corp into two companies — one for publishing and the other for media and entertainment — and said details about management and boards will be ready by year end.
Murdoch said preliminary results of shareholder votes showed that all board candidates were elected, and management got its way with all of the shareholder resolutions — including one that would require the chairman to be independent of management. That’s not surprising: Murdoch’s family controls 39.7% of the voting shares and Rupert’s ally, Prince Alwaleed Bin Talal Abdulaziz Alsaud, has another 7%. Critics have said that they would make a powerful point if a majority of the other investors support the changes.


I would like to congratulate at least two of the major institutional investors, Julie Tanner of Christian Bros. Investment Svs. and Ian Greenwood of the UK Authorities Local Pension Fund, to be among the few COURAGEOUS VOICES at the News Corp. meeting for the need of massive senior management reforms — all the impressive in view of Chairman/Mullah/Citizen Rupe Murdoch being present at corporate board meetings!
The fact they stood up, particularly Mr. Greenwood in questioning when Citizen Rupe should be stepping aside in light of a litany scandals (including FELONY investigations in the U.S. still ongoing!) and just a GOD AWFUL, complete and utter lack of proper corporate governance from the very top of News Corp. are among the many CANCERS facing News Corp. as a “publicly-traded” company!
There is the mere fact that News Corp. shareholders have had to watch as the company has had to make HUNDREDS OF MILLION$ OF DOLLAR$ in settlement payoffs (also to buy SILENCE) of victims, former employees (including reporters and editors from NOTW) and buying out former couponing competitors in the U.S. that had previously had their computer mainframe systems HACKED into by cohorts of News America Marketing (and that does not include security cards being forged by NDS to “unlock” encryption codes on Dish TV settop boxes).
There has LONG been a rampant,pervasive and systemic issaue of OUTRIGHT CRIMINALITY in businesses attached to the Murdoch family running News Corp. Heck, I’m still dumbfounded how Citizen Rupe got his company to “value” his daughter’s Shine Media Group for a way over-inflated $670 million (for a production company whose biggest hit was “Biggest Loser” in the U.S. and that’s about it) and letting Elizabeth Murdoch run off with almost $400 million of that Mad Murdoch Money in this totally “INSIDER,” sweetheart deal.
In fact, I’m absolutely astounded how ANYONE in the Murdoch family (including Lachlan, Elzabeth and Citizen Rupe) have the mere chutzpah to look shareholders in the face with their unabashedly criminal and/or shady business practices. It just blows me away that the Murdoch family can hold politicians by the necks in the U.S. and U.K. and look like the Mullahs or Taliban running Afghanistan or Iran — there’s that much fear that persists in Hollywood and London over what kind of smut Mullah Rupe can put into print! Citizen Rupe makes William Randolph Hearst look like chump change.