James Murdoch is set to return as chairman of pan-European pay-television broadcast group Sky, replacing Nicholas Ferguson in the role.
Sky’s board today (Friday) said that Ferguson had decided to step down as chairman and as a director of the company at the end of April after 12 years on the board. After joining the board as a non-executive director in 2004, he was appointed as chairman in 2012 and has since overseen a period of strong growth for the company, including the transaction to bring the Sky Italia and Sky Deutschland businesses under the Sky banner.
Murdoch (left of picture) will succeed Ferguson as chairman having been a director of the company since February 2003 and previously serving as chief executive from November 2003 to 2007 and as chairman from 2007 to 2012.
Murdoch stepped down as chairman of the then BSkyB following the fallout caused by the phone-hacking scandal at News International, publisher of UK newspapers the Sun, Times and now defunct News of the World, where he held the role of chairman. At the time, Murdoch said he had stood down in an effort to avoid becoming a “lightning rod” for criticism of Sky due to his association with the phone-hacking scandal.
“Without a doubt he is the right man for the job,” Sky chief executive Jeremy Darroch said, according to The Guardian newspaper. “The board was unanimous in support of James. At the time he stepped aside he felt was putting interests of the company ahead of his own. (Since then) he has been consistently re-elected by shareholders (as a non-executive director). It was a smooth process and got to a good outcome. His knowledge of the international media industry will be a big asset.”
Commenting on his exit, Ferguson said in a statement: “When I became chairman in 2012, I wrote in the annual report that I would stay on long enough to ensure continuity. The then virtually new board is now seasoned and bedded in. We have completed major international acquisitions in Germany and Italy; they are running to plan and we have first-class management in place. Sky continues to grow impressively, to innovate with wonderful products and to serve its customers to the highest standard. So now is the right time for me to step back.”
Martin Gilbert has been appointed as deputy chairman, with Andrew Sukawaty taking over his former role as Sky’s senior independent director.