Monday, July 04, 2005

News Corporation EGM (2005)

Details
Company: News Corporation
Type: Extraordinary General Meeting
Date: 1 July 2005
Chairman: Rupert Mudoch (executive)
CEO: Rupert Murdoch

I wasn't able to attend this meeting, mainly because it was held in New York, but I thought I might voice my opinion on it anyway. Rupert Murdoch likes holding his AGMs in places where it is hard for most shareholders to go. Up until last year all of the AGMs were held in Adelaide, not exactly the investor capital of Australia (or second, or third...). The Herald had an article on it here. Interesting to note that only one person got up to ask a question, just one.

Let me say, before I blast Rupert Murdoch, that in my opinion he is the greatest, most successful businessman Australia has ever produced. As far as powerful people go, he's up there at the top, and that's of the world, not just Australia. Sure, world leaders are more powerful, but they are positions, not people. Rupert Murdoch is not limited to 2 4 year terms as head of News Corp, he's been there for decades. He has almost single handedly created one of the largest media groups in the world.

But, like many owner-chairmen-CEOs, he treats the company like its all his. He owns about 30% of the voting stock, but his Newscorp shares are only worth about 10% of the total value of News Corp when you take the non-voting stock into account. So he is able to control the company, despite only owning 10% of its shares. And boy does he control it! These options that he is giving to his executives - and he is giving them to his executive, they are in the money, all they have to do is keep the share price at its current price and BANG, juicy profits.

And being the owner of about half of Australias newspapers and a significant shareholder in Foxtel and Sky News Australia, there is not a whole lot of critisism of him in the media. I read the Australian on the same day as the SMH article, News Corp didn't even get a mention in its business section. Good work Rupert!

But, as long as you're as successful as he is, you can get away with a certain amount while only sustaining mild critisism. And with only one person asking him questions at the AGM, mild critisism is all he will get.

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