Murdoch to face shareholders at News Corp. annual meeting

October 21st, 2011

News Corp. Chairman and CEO Rupert Murdoch will address shareholders at the company’s annual meeting. It will be the first time that Murdoch and his sons, Lachlan and James, have come face-to-face with investors since the phone-hacking scandal hit the company earlier this year. School of Management professor James Post, an authority on corporate governance and business ethics, offers the following comment:

“Will Rupert Murdoch reap the bitter fruit of the News Corp. hacking scandal at the annual meeting? It’s clear that a number of activist shareholders plan to attend and will, if possible, speak to the chairman. It’s also clear that some number of institutions and individuals will vote to remove Rupert M. as chairman of the board.

“But neither the protest nor the votes are likely to change the reality of who controls News Corp. The Murdoch family interests have a bevy of governance devices to ensure their continued power. But Rupert Murdoch is 80 years old, and there is drama in the family empire. His children are ambitious and, like their father, willing to take on a fight.

“The long-term course of News Corp. may be determined more by family feud than corporate governance.”

Contact Post at 617-353-4162; jepost@bu.edu

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