First Super Seeks to Remove Murdoch

First Super is seeking to remove Rupert Murdoch as chairman of News Corp. The call also extends to Murdoch’s sons Lachlan and James, who First Super believes should not be elected as two of the four directors of the company.

First Super joins other UK and US funds who are calling for the Murdoch men to step down from the media company because of the infamous phone-hacking scandal.

First Super said it would vote its News shares to support calls for Murdoch and his sons to stay away from the company. Graeme Russell said his company is seeking a more independent News Corp board complemented with an independent chairman.

First Super controls about $1.7 billion of funds. Russell is the chief executive of the company.

Russell said First Super seeks to have transparent governance in News Corp. He added that the sentiments of minority shareholders have always been overlooked and compromised.

The First Super CEO also said that effective leadership is vital to the lives of News Corp employees, adding that they are entitled to a leadership that promotes ethical and quality journalism.

Russell also touched on what he said is excessive salaries of News Corp executives. The combined cash pay of News Corp’s top six executives amounted to US$65.5 million. He said that this equivalent to the combined salary of nine executives from BHP Billiton.

He said that no senior executive should earn 500 times more than his employees.

Aside from First Super, the Australian Council of Superannuation Investors is also calling for the election of independent directors in News Corp.