7th Dec 2007 07:01
British Sky Broadcasting Group PLC07 December 2007 BSkyB Group plc announces Board changes •Rupert Murdoch steps down from the Board •James Murdoch appointed Non-Executive Chairman •Jeremy Darroch appointed Chief Executive Officer •Selection process underway for new Chief Financial Officer The Board of British Sky Broadcasting Group plc ("Sky" or the "Company") todayannounced that Rupert Murdoch has decided to step down as Chairman and as aDirector of the Company. He is succeeded as Non-Executive Chairman by JamesMurdoch, who was appointed to Sky's Board as a Non-Executive Director inFebruary 2003 and has served as Chief Executive Officer since November 2003. Theappointment was made following consultation with major shareholders. JamesMurdoch is leaving his post as CEO to take a new executive position at NewsCorporation. The Board has appointed Jeremy Darroch, previously Sky's Chief FinancialOfficer, as Chief Executive Officer. The decision follows a review of potentialcandidates from inside and outside the Company by the Independent Non-ExecutiveDirectors. Since joining Sky in August 2004, Mr Darroch has worked closely with JamesMurdoch in setting strategic direction for the Company and has been deeplyinvolved in the running of the business at all levels. He joined Sky from retailgroup DSG International plc (then Dixons Group plc), where he held the positionof Group Finance Director. Prior to DSG, he spent 12 years at Procter & Gamblein a variety of roles in the UK and Europe. Mr Darroch is also a Non-ExecutiveDirector and Chairman of the Audit Committee of Marks & Spencer plc. The Board has initiated the process to select a new Chief Financial Officer. Afurther announcement will be made in due course. The changes were overseen by Nicholas Ferguson, Sky's Senior IndependentNon-Executive Director, working in close consultation with Lord Rothschild,Deputy Chairman, and Lord Wilson of Dinton, Chairman of the Corporate Governanceand Nominations Committee, and were approved unanimously by the Board. Speaking on behalf of the Board, Nicholas Ferguson said: "With these changes, the Board has taken action to ensure continuity ofworld-class leadership at Sky. Jeremy has played a crucial role in the company'stransformation. He is the first Chief Executive to be appointed from within Skyand is the unanimous choice of the Board to lead the company's continued growth.Under James and Jeremy, Sky has accelerated its rate of growth and, with theoutstanding management team in place, is prospering in both entertainment andcommunications. "We are delighted that James has accepted the appointment as Non-ExecutiveChairman. The Board is committed to high standards of corporate governance andseeks to comply with the Combined Code. We are well aware of its terms withrespect to independence. Sky has strong Independent Directors and we were quiteclear that our overriding duty in selecting a Chairman was to do what was in thebest interest of the Company and its shareholders. We were unanimous in ourdecision that the appointment of James meets this key test given his deepknowledge and understanding of the strategic issues facing the Company and theindustries in which we operate, his commitment to Sky, and the continuity thisprovides. "Under the leadership of Jeremy, and with James as Non-Executive Chairman, thisis the right, strong team to take Sky forward with an effective strategy forgrowth in the fast changing media and communications marketplace. "Finally, on behalf of the whole Board and the shareholders, I would like toexpress our warmest gratitude for, and pay tribute to, the unparalleledcontribution made by Rupert Murdoch over the last eighteen years. His spirit andvision have been instrumental in building one of Britain's great companies." Rupert Murdoch became a Director of the Company in 1990 and has served asChairman since 1999. Over the course of his involvement, Sky has grown from astart-up to Europe's most valuable pay TV company, reaching one in threehouseholds in the UK and Ireland. Rupert Murdoch said: "Sky is a special company with a deeply held belief that people benefit fromincreased choice. Today more customers are choosing Sky than ever before as thecompany strives to offer the best choice, quality and value in an expandingmarketplace. This progress has been achieved by an accomplished executive teamunder the leadership of James and Jeremy. I am confident that they and theircolleagues will continue to set the pace in our industry." James Murdoch said: "The team at Sky has demonstrated the success that can be achieved with anappetite for change and a single-minded focus on customers. I am pleased to havethe opportunity to become Non-Executive Chairman and I look forward tosupporting Jeremy in his role as Chief Executive. Sky's transformation isprogressing well and both Jeremy and I are committed to seeing it through." Jeremy Darroch said: "Few companies of Sky's scale have its capacity for moving quickly, seizingopportunities and thriving on a culture of change. Sky's success is a testamentto the talent of my colleagues and I'm excited and privileged to lead a companythat touches so many families across the UK and Ireland. We are well positionedand I am committed to pursuing a strategy that further deepens our customerrelationships and creates significant value for shareholders." END NOTES 1. Independent Non-Executive Directors: Lord Rothschild (Deputy Chairman, member of the Corporate Governance &Nominations Committee)Nicholas Ferguson (Senior Independent Non-Executive)David EvansAndrew HigginsonAllan LeightonJacques NasserGail RebuckLord Wilson of Dinton (Chairman of the Corporate Governance & NominationsCommittee) 2. James Murdoch intends to offer himself for reappointment by shareholders atthe Company's 2008 Annual General Meeting 3. It has been announced separately today that James Murdoch has been appointedto the new executive position of Chairman and Chief Executive, Europe and Asia,News Corporation. 4. Biographical Details: James MurdochJames Murdoch has been a Director of Sky since February 2003 and its ChiefExecutive Officer since November 2003. Prior to his appointment as CEO, he wasChairman and Chief Executive Officer of Star Group Limited. Mr Murdoch serves onthe Board of Yankee Global Enterprises, the Board of Trustees of the HarvardLampoon and the Leadership Council of The Climate Group. Jeremy DarrochJeremy Darroch was appointed as Chief Financial Officer and a Director of Sky inAugust 2004. He was previously Group Finance Director of DSG International plc(then Dixons Group plc), which he joined in January 2000 as Retail FinanceDirector. Prior to Dixons, he spent 12 years at Procter & Gamble in a variety ofroles in the UK and Europe, latterly as European Finance Director for theirHealth Care businesses. Mr Darroch is a Non-Executive Director and Chairman ofthe Audit Committee of Marks & Spencer plc. Nicholas FergusonNicholas Ferguson was appointed as a Director of the Company in June 2004 andSenior Independent Non-Executive Director in June 2007. Mr Ferguson is Chairmanof SVG Capital plc, a publicly-quoted private equity group, and was formerlyChairman of Schroder Ventures. He is also Chairman of the Courtauld Institute ofArt and the Institute of Philanthropy. Enquiries: Analysts/Investors: Andrew Griffith Tel: 020 7705 3118Robert Kingston Tel: 020 7705 3726 E-mail: [email protected] Press: Matthew Anderson Tel: 020 7705 3267Robert Fraser Tel: 020 7705 3036 E-mail: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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