BSkyB to face revolt over pay and bonuses?

net1

Rumours are that local authority pension funds are lining up to join a shareholder revolt at BSkyB's annual meeting today as the row about the satellite broadcaster's corporate governance comes to a head.

While the appointment of James Murdoch, as the new chief executive of BSkyB is expected to go largely unchallenged, institutions are still want to protest about directors' pay and the board structure.

Approval of BSkyB's remuneration report is seen as the most likely forum for a protest vote, along with the re-election of Lord St John of Fawsley, the senior non-executive director who led the search for a chief executive to replace departing Tony Ball.

The Association of British Insurers has flagged what it calls "very serious corporate governance concerns" with BSkyB. A spokesman said: "We want to stay in contact with the company following the AGM. There are some serious issues to be resolved but it is down to our members as always how to vote."

Meanwhile, Standard Life Investments has said it was disappointed with the process that put Murdoch in the chief executive's chair and said it would be "actively engaging" with BSkyB in pursuit of the principles of good corporate governance.