Murdoch’s Son to Get Severance

News Corp. Deputy Chief Operating Officer Lachlan Murdoch, who resigned last week, will receive a separation payment equal to his fiscal 2005 salary and bonus of as much as $7 million.

Lachlan Murdoch, son of Chairman Rupert Murdoch, agreed to consult for the company for two years and not compete with it, New York-based News Corp. said Wednesday in a filing with the Securities and Exchange Commission. His resignation is effective Aug. 31.

The agreement would potentially boost Lachlan Murdoch’s separation payment above the $1.8 million in salary and $2.34 million in bonus he received in the fiscal year ended June 30. The size of his bonus is linked to the company’s share performance under an executive incentive plan approved by shareholders in May, the company said in the filing.

Rupert Murdoch’s bonus may rise to as much as $25 million under the plan, News Corp. said. He was paid $17 million in fiscal 2004, including a bonus of $12.5 million and $4.5-million salary.

News Corp. also announced that Rupert Murdoch will replace Lachlan as publisher of the New York Post, which was founded in 1801.