Snubbed BSkyB chief 'set to quit'

SHAREHOLDERS in BSkyB fear that highly regarded chief operating officer Richard Freudenstein is ready to quit after failing to win a seat on the board.

Freudenstein lost out last year to James Murdoch, the 30-year-old son of chairman Rupert Murdoch, in the race to become chief executive.

Since then, BSkyB has been under pressure to revamp its board and introduce some new blood to curb the influence of the Murdoch family, who own 35%. BSkyB has just two executive directors on the board - James Murdoch and finance director Martin Stewart, who has already resigned from the company and will leave in the summer after also being passed over for the top job.

Non-executive director Lord Wilson is due to present the findings of his review into corporate governance-to the BSkyB board next month. In addition to the appointment of two new non-executive directors, he is also expected to recommend hiring a third senior executive. Freudenstein has been suggested as a likely candidate.

However, it is understood he will not be appointed to the board, partly because his presence might make things awkward for James Murdoch.

BSkyB said Freudenstein 'had no plans to leave' the company.