Rupert Murdoch received the grilling he had expected at News Corp.‘s shareholders meeting and was more than prepared in remarks that offered a mix of contrition, amusement, weariness and ultimately, a sense that all was well and right with the company and his standing as Chairman and CEO.
Murdoch opened the meeting, which was greeted by protesters holding placards outside the Fox (NSDQ: NWS) Studios’ Zanuck Theater in Los Angeles, with a general statement that served as the basis for each of his responses to his detractors.
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“It’s fair to say that the company has attracted a certain amount of attention in recent months. And I wanted to reaffirm the serious with which I take what has gone on in London, as well as put that controversy in context of our entire global business. I want to share my optimism with you about the growth of our profits, our products and most importantly, our people. The story of our company is the stuff of legend…”
Murdoch would have preferred to tout the company’s share price—up 15 percent this year, though down 7 percent since July, he said—but the meeting was dominated by charges that the company is not done with the fallout from the phone-hacking scandal in the UK. (Perhaps not coincidentally, the meeting began at 10am Pacific time, which was about 6pm Friday night in the UK.)
In terms of the contrition, Murdoch told shareholders, “We cannot just be a profitable company. We must be a principled company. We simply can’t deliver on our mission to inform and entertain if our 50,000 employees are not beacons for good, professional and ethical behavior. That is why we must admit to, and confront, our mistakes…. Over the past few months, we’ve been the subject of allegations that some our journalists in Britain have hacked the personal telephone voice mails. There is simply no excuse for such unethical behavior. We could not take this more seriously or listen as intently to criticisms.”
For the next hour, Murdoch heard the criticisms, but he did not just listen intently. He parried several times with Labour MP Tom Watson, who was able to secure a proxy that will allow him to vote on behalf of a shareholder. Before he took the mic, Julie Tanner, corporate advocacy coordinator at Christian Brothers Investment Services, put forward a motion that Murdoch be voted down as chairman over the News of The World phone hacking scandal. “Thank you, I’m sure the board will take that under consideration,” Murdoch said.
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