The largest phone hacking scandal in history claims top executive.
James Murdoch, heir apparent to the billion-dollar NewsCorp media empire, announced that he is stepping down from his leadership position at News International, the UK arm of NewsCorp.
In light of the phone hacking scandal affecting News International, Murdoch will relinquish his corporate leadership title and relocate to the company’s New York headquarters where he will keep his deputy chief operating officer position and focus on its pay television businesses and international operations.
It remains unclear how much this move will affect Rupert Murdoch, chairman and CEO, who holds an ironclad grip on the embattled media company; and it begs the question of whether the company has an effective succession plan in place.
Many industry analysts expected Murdoch’s son, James, to eventually take over the reins of the company but this no longer seems likely. A USA Today report claims that Chase Carey, NewsCorp’s incumbent president, is now the most likely successor to lead the scandal-plagued empire.
Paul Hodgson, chief communications officer and senior research associate at GovernanceMetrics International, says, ‘NewsCorp was one of the first 10 companies to be added to our Risk List. No evidence is offered of improving and enhancing governance programs and given GMI Ratings’ current ESG rating of F, our lowest possible grade, and an accounting risk rating of ‘aggressive’, we know of none.’
