By Paul Hodgson - CCO and Senior Research Associate
The news that James Murdoch has stepped down as executive chairman of News International, the UK arm of News Corp, comes on the heels of more and more incriminating evidence that he was somewhat economical with the truth when asked about his complicity in the phone tapping scandals, and bribery scandals, and surveillance scandals that are crashing about the ears of the company. This leaves News International – one of Rupert Murdoch’s favorite arms of Newscorp (or at least it was) – without any member of the Murdoch family in a senior position.
"We are all grateful for James' leadership at News International and across Europe and Asia, where he has made lasting contributions to the group's strategy in paid digital content and its efforts to improve and enhance governance programs," said Rupert Murdoch, Chairman and Chief Executive Officer, News Corporation.
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. Not only that, but News Corp was one of the first 10 companies to be added to our Risk List. James Murdoch, who has relocated to New York, “will continue to assume a variety of essential corporate leadership mandates.”
