News Corp shareholders voted in favor of maintaining the company’s dual-class share structure, rejecting an activist investor’s proposal aimed at reducing the Murdoch family’s influence over the media conglomerate.
The Wall Street Journal reports the nonbinding proposal, which was submitted by activist investment firm Starboard Value in September and had garnered broad support from proxy-advisory firms, would have made each outstanding share of News Corp’s common stock equal to one vote. Currently, Class B have greater voting power than Class A shares.
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| Rupert Murdoch |
Starboard argued in a letter to shareholders in September that the dual structure wasn’t a best-in-class corporate-governance practice. The firm said the continuing legal fight involving Murdoch and his children over control of the media conglomerate was one example of a risk to the organization.
News Corp responded that the dual-class share structure promoted stability at the company.
News Corp said Wednesday that it was pleased its stockholders had convincingly supported the company and board on all matters. The company’s full slate of directors was also elected at the annual meeting of shareholders.
News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.
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