Shareholder watchdog wants Sky's James Murdoch out

BSkyB's annual general meeting in a fortnight's time is shaping up to be a major test for chairman James Murdoch as another leading shareholder advisory group today urged investors to vote against him.

"Murdoch's involvement in the phone-hacking inquiry increases the risk that the company's public standing and image overall will be damaged," said Pensions & Investment Research Consultants.

PIRC added that his new role as News Corp deputy chief operating officer in New York and non-executive directorships, including with GlaxoSmithKline, meant he does not have "sufficient time" for the pay-TV giant.

The watchdog also urged investors to vote against Sky directors David DeVoe, Arthur Siskind and Thomas Mockridge on November 29 because of their links to 39% shareholder News Corp.

PIRC adds to the chorus of voices, including the Local Authority Pension Fund Forum, which have called for Murdoch to quit.

Sky's directors took the rare step on Friday of writing to shareholders to offer him their unanimous backing.

Meanwhile, activist investor Christopher Hohn, who runs the Children's Investment Fund, has taken a 1% stake in News Corp.