News Corp. Hikes Murdochs’ Pay9/05/2011 12:01 AM Eastern
News Corp. chairman and CEO
Rupert Murdoch received a 47% pay hike
in fiscal 2011, raking in $33.3 million for
the period ended June 30.
The increases come on the heels of
one of the most difficult periods in News
Corp.’s storied history. In July, the media
giant was rocked by new revelations in a
phone-hacking scandal that resulted in
the closing of its British tabloid News of
the World and forced the media giant to drop its bid to
acquire the rest of U.K satellite giant British Sky Broadcasting.
The ensuing controversy resulted in Murdoch and his
son James, who claimed no prior knowledge of the practice,
testifying before Parliament and launching an investigation
into reporting practices at its other
newspapers around the world.
According to a proxy statement filed
Sept. 2, Murdoch received total compensation
of $33.3 million in fiscal 2011, a 47%
increase from the $22.7 million he received
in the prior fiscal year. Murdoch’s base salary
of $8.1 million remained the same, but
the media mogul’s stock compensation
doubled from $4.1 million in fiscal 2010 to
$8.5 million in fi scal 2011. He also received
a $12. 5 million bonus in fiscal 2011, after receiving no bonus
award in fiscal 2010 or 2009.
Other News Corp. executives got even bigger increases.
Murdoch’s son, deputy chief operating officer and chairman
and CEO International James Murdoch, later last
Friday turned down a $6 million bonus he was awarded
for the year, dropping his fiscal 2011 take to about $11.9
million, or 15.5% above the $10.3 million he earned in fiscal
2010. If he had accepted the bonus, his compensation
would have increased to 74% for the year to $17.9 million.
In a statement, James Murdoch said that although his bonus
was awarded based on financial metrics, he felt that in
light of the controversy surrounding the News of the World
scandal, turning down the award “is the right thing to do.”
Chief financial officer David DeVoe more than doubled
his total haul in fiscal 2011, to $18.2 million from $7.1 million
in fi scal 2010.
Chief operating officer Chase Carey received a more
modest increase for the year — 15.8% to $30.2 million
from $26 million in fiscal 2010. Rounding out the top
executives, Roger Ailes, Fox News Channel and Fox
Business Network chairman and CEO, as well as Fox
Television Stations and Twentieth Television chairman,
received $15.6 million in total compensation for fi scal
2011, an 11.4% increase from the $14 million he received
in the previous year.