News Corp (Nasdaq:NWS) announced two brand new directors who will be voted in next annual meeting Oct 16, 2012 in Los Angeles. Considering the governance difficulties facing News Corp you have to wonder about the two-way motivation for the two newbies. Alvaro Uribe is the former president of Columbia and a bog supporter of america’s war on drugs. Much of this war was fought in Columbia with American money and resources. The justification for Alvaro Uribe is his international credentials in particular insights into Latin America.
The other nominee is a former Labour Secretary from 2001 to 2009, Elaine L. Chao. News Corp says it likes her experience in leading vast complex organizations. and you know what she does have experience leading large complex organizations.
No news yet on compensation structure but I’m sure it’s not minimum wage.
What News Corp is hiring/acquiring is political cover and savvy. Rupert Murdoch long the master manipulator for right-wing causes has managed to get himself into a lot of trouble with the illegal wire tapping cell phone abuse scandals. What does he need?
Political cover, contacts and savvy. Expertise is waging war against drug cartels not so much.
George Gutowski writes from a caveat emptor perspective. Follow him on twitter @financialskepti