Fix FOX Now
The text of the Fox Corp. shareholder resolution (#5) voted on Nov. 10, 2021:
RESOLVED: Shareholders request our Board of Directors take steps necessary… to become a public benefit corporation (a “PBC”) …. Shareholders request that one of the public benefits included in the amendment be provision of the Company’s viewers with an accurate understanding of current events through the exercise of journalistic integrity, or such other public benefits as the Board of Directors determines to provide similar benefits to its viewers.
UPDATE: The Nov. 10 resolution garnered roughly
1.9 million voted shares
valued at about $73 million, or 1.07%.
We'll pursue more opportunities like this going forward.
Detoxify Fox News by Restructuring Fox Corporation
Through a shareholder resolution voted on November 10, 2021, Fox Corp. shareholders were able to apply pressure on management to give priority to accuracy and journalistic integrity and thereby help protect the overall value of their investments.
Fox Corp. investors typically own many stocks other than Fox Corp., meaning their portfolios can get hammered if Fox News disinformation roils governments and economies.
The corporate accountability community promoted this shareholder resolution to change Fox Corp.’s management incentives.
Under the current corporate structure, Fox News' managers can say it's their job to profit off disinformation. While the country and the planet would be better off if Fox chose reality-based reporting over disinformation-based profitability, the Fox Corp. directors can argue that their shareholders’ narrow financial interests are best served by maintaining the status quo – or going even more extremist.
In fact, Fox News disinformation-based profits are a poor deal for the vast majority of Fox Corp. investors. As Matt Levine wrote in a recent Bloomberg Money Stuff piece, "The argument here is that (1) most of Fox’s shareholders are diversified (other than Murdoch of course), (2) diversified shareholders, in some sense, own the entire world, and (3) if a company’s activities are bad for the world, they are bad for its (diversified) shareholders, even if they are lucrative for the company...'You own other stocks, so vote your shares of this company to maximize the value of your overall portfolio.'"
Fox Corp. management's incentives could have been broadened to consider the greater good. The shareholder resolution proposed to change management incentives by restructuring Fox Corp.as a Public Benefit Corporation (PBC). As a PBC, Fox management could only fulfill its fiduciary responsibilities by thinking about more the impact of Fox News disinformation on the public at large.
a full rationale
DDAD sees merit in approaches to increasing media accuracy that rely on investors' recognition that their long-term financial interests are not aligned with corporate structures, policies, practices and incentives that seek short-term profit from disinformation.
We plan to seek and support other campaigns such as Fix FOX Now.