The proxy advisory firm Insitutional Shareholder Services has a recommendation for News Corp. shareholders: Vote out the Murdochs and 10 other directors, reports Bloomberg.
ISS, which advises more than 1,700 investors on corporate governance issues, has recommended that shareholders vote against reappointing Chief Executive Rupert Murdoch and his sons James and Lachlan, as well as 10 other directors. The advice comes after News Corp. has suffered financially from a phone-hacking scandal at one of its newspapers, which ISS said reflects a lack of oversight, according to the piece.
“The company’s phone-hacking scandal, which began its public denouement in July 2011, has laid bare a striking lack of stewardship and failure of independence by a board whose inability to set a strong tone-at-the-top about unethical business practices has now resulted in enormous costs,” according to the ISS report.
Another proxy advisory firm, Glass Lewis & Co., agrees that News Corp. needs a more independent board. It’s recommending that shareholders vote against James and Lachlan Murdoch and four other directors. Glass Lewis advises institutions with more than $15 trillion in assets, the piece adds.
A News Corp. spokeswoman said the company strongly disagrees with the ISS voting recommendations and that it failed to consider News Corp.’s financial performance, which includes a 23% increase in operating profit for the year ending in June, according to the article.