James Murdoch declines big bonus

Rupert Murdoch. Photo Reuters
Rupert Murdoch. Photo Reuters
News Corp awarded Rupert Murdoch and his son James big compensation increases, though James declined his bonus, citing controversy over a phone hacking scandal at the UK newspaper unit that he oversees.

The annual bonus, announced today, would have bumped James Murdoch's compensation by 73 percent. His father got a 47 percent increase, bringing his compensation to $US33.3 million. The awards came on the same day that two longtime directors said they could quit the media company's board.

James Murdoch was set to get a payout of $US17.9 million, boosted by a $6 million bonus and $8.3 million in stock awards. He will now receive $US11.9 million. His father's pay was boosted by a $12.5 million bonus and $8.5 million in stock awards.

As head of international operations, James Murdoch has been under media and government scrutiny since the hacking scandal erupted at the London tabloid News of the World on July 4.

There has been speculation that he would have to step down, especially after former News Corp executives challenged the accuracy of his testimony to a UK Parliamentary committee on the phone hacking case.

"While the financial and operating performance metrics on which the bonus decision was based are not associated with this matter, I feel that declining the bonus is the right thing to do," Murdoch said in a statement.

Compensation for Deputy Chairman Chase Carey, News Corp's highest-paid executive last year, rose 16 percent to $30.2 million.

News of the raises may prompt new questions about the board's oversight in light of the hacking scandal.

James Murdoch said he will consult with the board's committee about whether a bonus may be appropriate later.

The compensation committee's members are independent directors. One is Viet Dinh, a former Justice Department assistant attorney general, also is one of the leaders of an internal company probe into the hacking scandal.

Another is Silicon Valley venture capitalist Thomas Perkins, who is leaving the board.

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