Murdoch Jnr facing Sky challenge

BSKYB finance director Martin Stewart is emerging as a strong internal candidate to become chief executive of the pay-television giant in opposition to James Murdoch, son of chairman Rupert Murdoch.

James Murdoch, 30, currently running the family empire's Star pay-TV operations in the Far East, has been touted as a shoo-in for the job after it became clear that £2.4m-a-year boss Tony Ball would be leaving.

But with the setting up of a BSkyB board committee to find a successor, it is understood that Stewart, 39, is to officially declare his candidacy.

Stewart, already a multi-millionaire in his own right from BSkyB share sales - last month he cashed in £4.2m of stock - is highly regarded in the City after five years as chief financial officer.

During that time, Stewart has been instrumental in overseeing Sky's move into the digital age and helping consolidate the satellite broadcaster's base of seven million subscribers under both Ball and his predecessor Mark Booth. Stewart previously worked for Polygram, and last year his pay rocketed 35% to £956,000.

City investors headed by the National Association of Pension Funds and the Association of British Insurers have demanded a wide-ranging, rigorous and impartial search for Ball's successor. The search committee is headed by Lord St John of Fawsley.