The New York Times: For Murdoch, a Board Meeting With Friendly Faces
Lucy P. Marcus was quoted in this article about Rupert Murdoch and the board of News Corporation. Read the full article here.
When Rupert Murdoch sat down with his board on Tuesday for the first time since a phone hacking scandal overseas plunged his company into turmoil, he was surrounded by a lot of familiar, friendly faces.
A perceived absence of true independence has long been a sore spot for those who criticize the News Corporation board as too deferential to Mr. Murdoch. Last week, in a rare attempt to mollify shareholders, News Corporation decided not to add Mr. Murdoch’s daughter Elisabeth to the board. It was widely expected she would join the board after the company bought Shine, her television production company, for about $675 million earlier this year.
“I keep watching this and thinking that they don’t realize we can see them,” said Lucy P. Marcus, chief executive of Marcus Venture Consulting who writes about corporate governance issues for The Harvard Business Review blog network. “The reason we have corporate governance is not because it’s a nice thing to do. It’s because if you actually have a robust board, it can be beneficial. I don’t think News Corp. would be in the same trouble that they are in now if they had an independent board.”
A version of this article appeared in print on August 10, 2011, on page B1 of the New York edition with the headline: For Murdoch, a Board Meeting With Friendly Faces, as well as page 15 of the print edition of the International Herald Tribune.