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Rupert Murdoch and the accidental director
Filed in archive corporate governance by leon on November 9, 2007
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Rupert Murdoch continues to rewrite the rules of corporate governance by appointing natalie Bancroft, a 27-year old opera singer, to the board of his global media empire. A mezzo-soprano who lives in England with little experience in journalism and business, she will join the News Corp board to represent her family's legacy when Murdoch takes control of Dow Jones next month. And Murdoch has shrugged off criticism from corporate governance experts who say you need someone with experience on a board like that. "That's rubbish" he told analysts, reports Nat Worden at TheStreet.com.

The Bancrofts, who have published the Dow Jones flagship the Wall Street Journal for 105 years, couldn't agree on a candidate before an important deadline, thus giving Mr Murdoch the final word in the appointment. Significantly, he knocked back two more seasoned candidates put forward by the family.

By putting someone with so little experience on the board, Murdoch moves another step closer to ensuring the board will rubber stamp his decisions. And that's bad governance because directors are supposed to be there to look after the interests of shareholders. As Nell Minnow, co-founder of the Corporate Library told reporters, it just won't wash.

"There are no training wheels in boardrooms and she is supposed to be up and running on day one," Minnow said. "It may be that she is a quick study and she is going to throw herself into this and learn all about accounting and SEC filings. It may be that they put her on the committee that plans the Christmas party and call it a day."

All this is in the context of continuing concern about Murdoch's influence with reports that Federal Communications commissioner Michael Copps wants the commission to review the acquisition of Dow Jones. Not that the FCC can do anything about it. But it adds another voice to the debate about media control and ownership. This issue will not fade.

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Tags: Rupert  Murdoch  Natalie  Bancroft  Down  Jones  murdoch  rupert+murdoch 
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