BSkyB finance chief Martin Stewart quits

BSkyB, Britain's largest pay-TV company, said today its chief financial officer Mr Martin Stewart was leaving the firm, three…

BSkyB, Britain's largest pay-TV company, said today its chief financial officer Mr Martin Stewart was leaving the firm, three months after he was beaten to the top job by Mr Rupert Murdoch's son.

"He wanted to be CEO, he didn't get the job, he decided to leave and BSkyB didn't stop him," said a source familiar with the matter. Under the terms of his contract, Mr Stewart is not allowed to work for a Sky competitor for 12 months.

Mr Stewart will remain as chief financial officer (CFO) through August 4th, or until a new CFO is found. He will also resign from the BSkyB board.

Mr Stewart was a candidate to become chief executive after the departure of Mr Tony Ball. The job went to Mr James Murdoch, son of Mr Rupert Murdoch, whose News Corp owns about 34 per cent of BSkyB's shares.

READ MORE

The younger Murdoch's appointment was bitterly contested by institutional shareholders, who complained that he would favour News Corp's interests and was not sufficiently experienced for the job.

"It can be taken as (James) Murdoch stamping his authority all over the firm and getting rid of the last Tony Ball ally, which is Martin Stewart, who is very highly thought of," said a trader at a London investment bank who spoke on condition of anonymity.

BSkyB chief operating officer Mr Richard Freudenstein also applied for the CEO job now held by Murdoch.

Mr Tony Ball received a £10-million sterling in exchange for agreeing not to work for a Sky rival. But Sky refused to say whether Stewart would receive a similar payment.