Murdoch appointment sparks shareholder fears

Fears have been expressed of a possible BSkyB shareholder backlash following the appointment of James Murdoch as the company’s new chief executive.

The 30-year-old son of BSkyB’s 35% stakeowner Rupert Murdoch was the unanimous choice of a four-member nomination committee.

However, institutional investors have demanded the corporate governance guidelines will not be compromised.

Murdoch Jnr must resign from the board of News Corp and its technology subsidiary NDS to become CEO.

The group stages its annual meeting on November 14 and some leading shareholders are expected to question the appointment.

Lord Rothschild, of the Rothschild banking dynasty has been named as a new independent deputy chairman to help reassure shareholder opposition.

BSkyB has said it will also appoint another independent director in the near term.

Shares in Europe’s leading pay-TV company rose 3.7% to 663.5p (€9.68) on Monday.