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(Reuters) - Twenty-First Century Fox Inc's FOXA.O Chase Carey will remain at the company for another year to support James and Lachlan Murdoch in their new positions running the media company.
The company's board on Tuesday promoted James to chief executive and his brother, Lachlan, to executive co-chairman, while naming Carey executive vice chairman.
Rupert Murdoch, who controls Fox through a trust that owns 39 percent of the voting shares, will become executive co-chairman. He previously also held the title of CEO, a role he is giving to James.
The management changes take effect on July 1.
The elevation of James, 42, and Lachlan, 43, has long been expected, and both brothers will now effectively take on Carey's duties.
Fox said that all corporate functions including the company's TV and film divisions will report jointly to James and Lachlan.
While James and Lachlan are said by company sources to have a good relationship and approach the business as partners, the duel-reporting line could prove to be confusing to management.
Carey confirmed he is staying with the company to help support the Murdoch brothers. That will no doubt calm some investors, who want the highly regarded executive and a non-family member to remain with Fox.
Carey, 61, has been the company's president and chief operating officer since 2009 and will serve as its executive vice chairman through June 30, 2016, when his contract ends.
Shareholders have warmed to the idea of James and Lachlan taking a bigger role with Fox. In 2013, the vast majority of independent investors did not vote for James and Lachlan as directors.
The tide turned in 2014 when only 24 percent of independent stakeholders opposed the board nominations of James and Lachlan.
"It has always been our priority to ensure stable, long-term leadership for the company, and these appointments achieve that goal," Rupert Murdoch, 84, said in a statement.
"Lachlan and James are each talented and accomplished executives and together, we, as shareholders and partners, will strive to take our company to new levels of growth and opportunity at a time of dynamic change in our industry."
James is currently co-chief operating officer and Lachlan is currently co-chairman.
Additional reporting By Lehar Maan in Bengaluru; Editing by Savio D'Souza and Steve Orlofsky