News Corp.'s Rupert Murdoch compensated $30 million, a 10% cut
Some members of the British Parliament felt News Corp. Chief Executive Rupert Murdoch was not “fit” to lead his sprawling media company in the aftermath of the continuing phone-hacking scandal in London. But News Corp. directors felt differently, bestowing Murdoch with a $30-million compensation package in the company’s 2012 fiscal year.
The amount, however, represented a nearly 10% decline -- or $3 million cut -- over Murdoch’s fiscal 2011 compensation of $33.3 million, according to regulatory filings Tuesday.
In May, a divided committee of the British parliament investigating the phone-hacking scandal issued a stinging rebuke of the 81-year-old chief. In a report, the panel said Murdoch was “not a fit person to exercise the stewardship of a major international company.” Murdoch has taken issue with the characterization, and remains at the helm of the global company.
More than 4,700 people had been identified as victims of illegal phone-hacking in Britain.
The media baron’s 39-year-old son, James Murdoch, whose reputation was tarnished by his handling of the British phone-hacking scandal, did not suffer financially, according to the filing.
Although James Murdoch this year stepped down from his role leading News International, the company’s publishing division in Britain, he received compensation of $16.8 million in fiscal 2012. A year earlier, Murdoch returned his $6-million bonus during the controversy and accepted $11.9 million in compensation.
News Corp. changed its formula to calculate its stock-awards program, contributing to lower total compensation for several executives.
The company’s No. 2 executive, Chief Operating Officer Chase Carey, was paid $24.8 million in fiscal 2012. That represented a nearly 18% reduction from Carey’s previous year’s compensation of $30.15 million.
The company’s third-highest paid executive was Fox News Channel Chairman Roger Ailes. He collected $21.1 million in compensation in fiscal 2012, a more than 30% increase over his fiscal 2011 package of $15.6 million.
Chief Financial Officer David F. DeVoe took home less. Last year, he received $10.8 million in compensation compared with $18.2 million in fiscal 2011.
News Corp.'s fiscal year ends June 30.
Separately, the company said it has nominated former U.S. Secretary of Labor Elaine L. Chao and former Colombian president, Álvaro Uribe, to join the board. The annual shareholders meeting will be Oct. 16 in Los Angeles.
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