PEBBLE BEACH (By Sallie Hofmeister, LATimes)
July 28, 2006 — When 250 News Corp. executives gather this weekend for a
management retreat at a posh California seaside resort, they'll skip the
typical team-building exercises that such confabs are known for. Why
role-play when you can pick the brains of actual world leaders and rock
stars?
Speakers at the Pebble Beach event will include such political powers as
British Prime Minister Tony Blair, former President Clinton and Israeli Vice
Premier Shimon Peres. Los Angeles Police Chief William J. Bratton will opine
on remaking complex organizations, former Vice President Al Gore will riff
on climate change, and U2's Bono will deliver a keynote address titled "The
Power of One."The singer is likely
to focus on his poverty- and AIDS-related crusade, called One. But Bono
could just as easily be referring to his host, Rupert Murdoch, the chairman
of News Corp.
If there's one man with the power to summon the powerful, mogul watchers
agree, it's Murdoch.
"It's his unique persona and his global reach that puts him in a special
category," said Jeffrey Sonnenfeld of the Yale School of Management. "He is
the fulfillment, although not ideologically, of what Ted Turner aspired to
be, in terms of having influence not only culturally but socially. Unlike
[Viacom Inc. Chairman] Sumner Redstone, Murdoch is interested in influence
as much as affluence."
Call it the Rupert effect. The 75-year-old media maverick personally invited
many of the luminaries who will make the five-day retreat an unusually
high-powered blend of politics and business. Not only did they say yes, but
at least one — Clinton — waived his usual $100,000 speaking fee.
A five-page agenda obtained by The Times reveals what management experts and
company insiders say is a testament to Murdoch's unusual global vision and a
product of his ownership of newspapers in Australia, New York and Britain,
broadcast properties and cable channels such as Fox News and satellite TV
services that reach every corner of the world.
"Murdoch has created a global media market by successfully operating in very
different regulatory and political environments," said Kathleen Hall
Jamieson, director of the Annenberg Public Policy Center at the University
of Pennsylvania. The retreat's lineup of speakers, she said, "may tell you
how he has learned about the broad base of business environments he operates
in."
News Corp. declined to discuss details of the program. According to the
agenda, Murdoch will make some opening remarks Sunday evening before turning
over the podium to Gov. Arnold Schwarzenegger, who in turn will introduce
Blair.
Over the next several days, Peres will appear on a panel called "Islam and
the West" and News Corp.'s Roger Ailes, who built Fox News, will introduce
four high-ranking U.S. military officers who have served in Iraq. Sen. John
McCain, the Arizona Republican and presidential hopeful, will talk about
America's political polarity, and Clinton will conduct a town-hall-style
discussion as the gathering wraps up Thursday.
"It's not your standard cookie-cutter management conference where you only
talk about business," News Corp. spokesman Andrew Butcher said. "The
businesses we run give our people unique social responsibilities in their
communities. The retreat is meant to provoke and broaden their perspectives
so they return home more curious and informed about the world."
What's in it for the politicians? That's simple, Jamieson said: "Media
influence and the potential for political contributions."
Murdoch, a staunch Republican, contributed $41,000 to federal political
campaigns during the 2004 elections, and News Corp. President Peter Chernin,
a Democrat, donated $53,000, according to the Center for Responsive
Politics. News Corp.'s political action committee gave nearly $360,000 to
House and Senate candidates in the 2003-04 elections, according to
PoliticalMoneyLine.
News Corp. said politicians who currently hold office would not be paid for
their participation. Jamieson said that paying them would have posed a
potential conflict of interest given their influence on media regulation.
Company executives said Clinton waived his fee because of personal ties to
the company; News Corp. Executive Vice President Gary Ginsberg was a lawyer
in the Clinton White House. Also, despite his conservative leanings,
Murdoch, who owns the New York Post, hosted a fundraiser last week for Sen.
Hillary Rodham Clinton (D.-N.Y.).
World politics will not be the only topic on the agenda. A.G. Lafley, chief
executive of Procter & Gamble, will lecture on building brands. A panel
called "Meet the MySpace Generation" is billed as a "live focus group" that
will explore the attitudes and lifestyles of 20 students. General Manager
Billy Beane of the Oakland A's baseball team will talk about radical
approaches to traditional business. And the LAPD's Bratton will be joined on
his panel about reforming institutions by former House Speaker Newt Gingrich
and former Harvard University President Lawrence H. Summers.
The retreat will be a family reunion of sorts for Murdoch. His son James,
who runs News Corp.'s BSkyB satellite service in Britain, will introduce
some speakers. Other Murdoch children also will be on hand, including News
Corp. director Lachlan Murdoch, who quit his management position with
family-controlled News Corp. last summer amid conflicts with his father.
The retreat in Pebble Beach, just up the road from Murdoch's Carmel ranch,
is modeled after an exclusive annual summit for media, technology and
financial moguls hosted by investment banking firm Allen & Co. in Sun
Valley, Idaho.
Both events devote mornings to formal presentations and afternoons to
hobnobbing outdoors. Allen & Co. shells out an estimated $10 million to
treat its guests and their families to white-water rafting, fly fishing,
golf, skating, skeet-shooting and yoga. In Pebble Beach, News Corp.
executives will be able to choose from 20 activities, including golf, tennis
and skydiving.
For News Corp., which is known for being tight-fisted, the retreat's
trappings are lavish. At Pebble Beach, one round of golf can cost $450,
including a cart. Executive suites at the Inn at Spanish Bay, where some
guests are staying, start at $995 a night.
Although the Allen & Co. conference is held annually, this year's News Corp.
summit is the first since 1998. A get-together planned for 2001 was never
held because of the 9/11 terrorist attacks.