In the world of business, Max Weber is usually more relevant than William Shakespeare. The saga of Rupert Murdoch is a notable exception.
The latest twist in his efforts to divide his realm could almost be a rewrite of the climax of King Lear. The 83-year old media tycoon has just restored his eldest son Lachlan to full favour, making him non-executive co-chairman of both 21st Century Fox and News Corp, the two media companies that the family controls. Lachlan's rise, after a period of corporate exile, corresponds with the apparent fall of his sister Elizabeth, who seems to have offended the patriarch.
James, the younger brother, becomes co-chief operating officer at Fox, in what looks like a partial rehabilitation. The mother and ex-stepmother of the three siblings remain out of the picture. As for the various courtiers in the Murdoch empire, only detailed psychological and economic forensics can determine their true standing, which could change tomorrow.
More From This Section
The 20th century German sociologist was the apostle of meritocracy - organisations with clearly defined jobs arranged in a well established hierarchy and assigned to the most qualified candidates. Family connections are irrelevant and big characters of any sort are dangerous. The recipe works extremely well, because jobs are done professionally and competence is rewarded. It also suits the modern individualist spirit. Most children want to prove themselves, not inherit their positions. Even the Murdoch offspring ran their own media companies when they were away from the paternal domain.
A dual-class share structure helps Murdoch keep Fox and News Corp in the family. Similar voting arrangements have led to dynastic structures at a few other companies, including the New York Times Company. But the practice is rare. After all, families all too often fight, and fighting is almost always unprofitable. The Murdoch drama may have been an exception up to now, but the story is not yet over.
