By Dale Kasler
Published: Friday, Jul. 22, 2011 – 12:00 am | Page 6B
CalPERS threw its own pie at Rupert Murdoch this week.
As the hacking scandal intensified at Murdoch’s News Corp., the California pension fund took aim at the company’s two-tier stock structure.
Having two tiers of stock enables company founders to maintain control. News Corp.’s Class B shares, owned mainly by the Murdochs, carry special voting rights. All told, the family has 40 percent of the voting power over News Corp. even though it owns just 12 percent of all the shares.
“This is a corruption of the governance system,” said Anne Simpson, senior portfolio manager at CalPERS for corporate governance, in a statement released by the pension fund.
Simpson added, “The situation is very serious and we’re considering our options. We don’t intend to be spectators – we’re owners.”
News Corp. stock has fallen about 9 percent in the past two weeks. The California Public Employees’ Retirement System owns nearly 6.9 million shares.
Earlier this week, a man tried to shove a shaving-cream pie in Murdoch’s face as he and other News Corp. executives testified before a committee of Parliament.
To read entire story, click here.