Succession lessons of the Murdochs’ dynastic drama

Rupert Murdoch is attempting to amend his family trust to give his son Lachlan full control over Fox and News Corp, fearing that his more moderate children might challenge Lachlan's leadership. Murdoch believes that Lachlan's conservative approach is crucial for the company's success, even though research shows that appointing a family member as CEO can negatively impact business performance. This move reflects the complexities of dynastic succession, where the founder's desire for continuity may conflict with what's best for the company.

The article also touches on the broader implications of family-run businesses, particularly in politically influential industries like media. With two-thirds of companies globally being family-controlled, how succession is managed can have far-reaching effects beyond corporate governance, potentially influencing the nature of the news and political content these companies produce. The uncertainty surrounding family dynamics makes the outcome of Murdoch's decision unpredictable, despite his hopes for a seamless transition.

For more information see The editorial board, "Succession lessons of the Murdochs’ dynastic drama" The Financial Times, August 2, 2024. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.