JAMES Murdoch bowed to pressure and resigned as BSkyB chairman as he admitted his links to the News International (NI) phone-hacking scandal threatened to damage the satellite broadcaster's reputation.
Mr Murdoch, who relinquished his role as NI executive chairman in February, said he did not want his position to become a "lightning rod" for BSkyB as he stepped down with immediate effect following months of pressure to leave the FTSE-100 company.
The deputy chief operating officer at News Corporation will stay on the board as a non-executive director and will be replaced by deputy chairman Nick Ferguson.
Shareholder lobby group Pensions & Investment Research Consultants (Pirc) called for Mr Murdoch to leave the BSkyB board entirely, while his father Rupert, News Corp chief executive, released a statement thanking him for his "successful leadership".
Mr Murdoch leaves the position just weeks before a Parliamentary report is published into News of the World reporting practices and an expected appearance alongside his father at the Leveson Inquiry.
His departure comes despite receiving backing from BSkyB shareholders, who reappointed him at the company's annual meeting last November.
In a letter outlining his resignation, Mr Murdoch said: "I am aware that my role as chairman could become a lightning rod for BSkyB and I believe my resignation will help to ensure there is no false conflation with events at a separate organisation."
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