James and Lachlan Murdoch get new contracts; Chase Carey to get $20 million consulting fee
James Murdoch, left, and Lachlan Murdoch.
Rupert Murdoch’s sons, James and Lachlan Murdoch, have received new four-year contracts as part of their promotions at 21st Century Fox with compensation that could reach $27 million a year for each of them, according to a regulatory filing.
In addition, Chase Carey, who has managed day-to-day operations of Rupert Murdoch’s company since 2009, will be paid a $20-million-a-year consulting fee when he segues into a new role in July 2016.
Carey vacated his chief operating officer position this month to make room for Murdoch’s two sons, who eventually will run the company.
Fox’s regulatory filing on Friday clarified Carey’s role and compensation.
As part of the transition, Carey for the next year will serve as executive vice chairman of the company and receive his current compensation package. Then, beginning in July 2016, Carey is expected to begin a two-year stint providing non-exclusive consulting services to the company.
Carey’s consulting role will not be considered a full-time position, and he will remain on Fox’s board of directors as vice chairman. Carey will report to Rupert Murdoch and the Fox board rather than James Murdoch, who becomes chief executive officer this month.
The consulting agreement will be renewed annually and run two years.
During the four-year term of their contracts, James and Lachlan Murdoch will each receive a base salary of $3 million a year and be eligible to receive an annual bonus “with a target of no less than $8 million and a maximum payout of no less than $16 million,” according to the filing.
The Murdoch sons also will participate in the company’s long-term stock performance incentive program and receive a stock bonus of “no less than $9 million,” the filing said. The total amount, which depends on company stock performance, could reach as much as $27 million.
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FOR THE RECORD
11:15 a.m.: An earlier version of this article stated that the total compensation for each Murdoch son could approach $30 million annually. The upper-limit target is closer to $27 million.
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James and Lachlan Murdoch will report to the Fox board. In addition, James will report to his father, Rupert, the executive chairman of the company.
Twitter: @MegJamesLAT
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