Rupert Murdoch, Sons, Re-Elected to News Corp.'s Board

Rupert Murdoch, Sons, Re-Elected to News Corp.'s Board

Published: October 21, 2011 @ 9:59 am
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By Brent Lang & Lucas Shaw

Updated 2:53 p.m. PT

Rupert Murdoch and his sons, Lachlan and James, survived a shareholders' vote on Friday. The entire clan was re-elected to News Corp.'s board of directors, the company announced.

Though it is the Murdochs that drew the headlines leading into the meeting in Los Angeles, the shareholders re-elected all 15 board members. 

An attempt by some activist investors to appoint an independent chairman of the board was denied. In addition, shareholders approved the company's executive compensation and other management proposals.

Although News Corp.'s annual shareholders' meeting was a contentious one, marred by protests and allegations of more hacking, Murdoch's hold on the company was seen as impenetrable. The Murdoch clan controls 40 percent of the voting stock. 

Voting results are being finalized and will be filed with the SEC early next week, News Corp. said. 

Still the victory was hard-fought. Murdoch was forced to endure nearly an hour and a half of grilling and grievances from investors Friday morning on the Fox lot. 

News Corp.'s  meeting closed Friday at roughly 11:30 a.m. PT, after the company's chairman faced tough questions about the extent of a phone hacking scandal that has engulfed his media empire.

Murdoch tried to quiet the storm with a mixture of contrition and combativeness.

On the one hand, he apologized, telling investors that there is "no excuse" for the phone hacking that took place at News Corp.'s string of U.K. tabloids. 

"There are real issues, that we must confront and are confronting," Murdoch said. "We could not be taking this more seriously, or listening as intently to criticisms."

On the other hand, he offered retorts to investors who questioned his leadership and dismissed accusations about the extent to which phone hacking was practiced at News Corp.'s print properties.

Also read: Hacked! How the News of the World Scandal Threatens Murdoch's Empire

The gathering of investors kicked off at Century City amid protests and calls for Murdoch's resignation.

British MP Tom Watson had told press before the meeting that he planned to expose a wider chain of wrongdoing at News Corp., but he failed to present any new evidence on Friday.

Instead, he only hinted that a computer hacking scandal "would be the next shoe to drop."

In response, Murdoch said that he was unaware of any allegations related to computer surveillance. 

Murdoch made light of the Labour minister's grilling, noting that he was allowed to appear on Fox News this morning. That's "fair and balanced," he joked. 

The often testy gathering required Murdoch to maintain a balancing act throughout forcing him to answer critics by dismissing more explosive charges or defusing them with humor.

The difficulty of this posture was in evidence during Murdoch's introductory remark, which praised the company's successes while lamenting recent improprieties.

"If we hold others to account, then we must hold ourselves to account...

Tags: British PM, Labour Party, Media, News Corp., phone hacking scandal, rupert murdoch, Tom Watson
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