Elisabeth Murdoch has declined an invitation to be nominated for a place on the board of News Corp. The move signals a decline in the prospects of a Murdoch dynasty
Rupert Murdoch’s actions over a period of years suggests his intentions of establishing a Murdoch dynasty at News Corp. The story has all the drama of a TV soap opera with a dash of reality TV as well. Part of the interest has been over which sibling would be most favoured to succeed the tycoon.
Any Murdoch is better than none
It has been suggested by biographers that any Murdoch would be prefered to someone outside the family. This is harder to achieve in a world in which there are interested parties or stakeholders. These extend to institutional investors, and governments concerned with Corporate responsibilities for ethical governance.
As might be expected, the eldest son Lachlan was front runner for heir to Rupert before signalling his reluctance to pursue a career in News Corp although remaining on the board. This placed youngest son James as a front runner in the speculation stakes. The 2011 problems of governance in the proposed takeover of Sky may have weakened the chances of James, but arguably have weakened the chances of all the Murdoch family to take over at the top of News Corp.
Rupert Murdoch has no prejudice against women as business leaders. Elisabeth Murdoch was for a while a front-runner as his heir, and has demonstrated considerable leadership flair in creating her own media businesses. However, Elisabeth has, like Lachlan implied that her interests would lie outside the top job at News Corp. However, her interests have remained intertwined with those of her father.
Although allegations of nepotism have been made, there can be little doubt of her capabilities to manage large media operations.
News Corp said Elisabeth Murdoch, 42, told [News Corp] directors that it would be “inappropriate” to join the board. She was expected to join the News Corp board after it bought Shine Group, the television production company she runs.
Rupert’s eldest daughter Prudence MacLeod sits on the board of Times Newspapers Ltd, part of News International.
Then there’s Wendi
Rupert’s formidable wife Wendi has been considered a serious candidate for some while. A trust-fund established for their children has become a critical aspect within the power relationships in the extended family.
Leaders born and made
Dynasties provide rich materials for students of leadership. The eventual winners in the succession stakes sometimes justify what others call nepotism. Often however, second and third generation family members lack the entrepreneurial flair of the founders.