Murdochs lose part of   bonuses over scandal
Murdochs lose part of bonuses over scandal

Rupert and James Murdoch have had part of their multi-million dollar cash bonuses withheld as a result of News Corp's UK phone hacking scandal.

But the company's most senior executives were still paid between $US10 million and $US30 million ($A9.82 million and $A29.46 million) in the 12 months to June 30.

Chairman and chief executive Rupert Murdoch was paid $US30 million ($A29.46 million) in the year, a 10 per cent reduction from the previous 12 months.

On top of a $US8.1 million ($A7.95 million) annual salary, Rupert Murdoch accepted a cash bonus of $US10.4 million ($A10.21 million), less than the $US12.5 million ($A12.27 million) he could have received.

James Murdoch, News Corp's deputy chief operating officer and former head of News International, was paid $US16.8 million ($A16.50 million) in the year to June.

He accepted a cash bonus of $US5 million ($A4.91 million), $US1 million less than his targeted bonus.

James Murdoch turned down a $US6 million ($A5.89 million) bonus in the 2010/11 financial year because of the scandal at the UK paper News of The World, which was part of the News International business.

The company said executive bonuses were reduced in 2011/12 because of the scandal.

"The compensation committee believed that management should share responsibility for the impact of these matters on the company, including the related costs, in the current fiscal year," it said in its annual review.

Chase Carey, Rupert Murdoch's deputy, had his pay reduced by 18 per cent from the previous year to $US24.8 million ($A24.35 million).

Chief financial officer David DeVoe had his pay cut by 41 per cent to $US10.8 million ($A10.61 million).

News Corp suffered a significant backlash from its independent shareholders at the company's annual general meeting in November 2011.

There were significant votes lodged against the re-election of James and Lachlan Murdoch to the board, and the remuneration of the company's executives.

Several resolutions have been put forward by shareholders for the upcoming annual general meeting, seeking the appointment of an independent chairman, the elimination of the company's dual-share structure, and simple majority votes on all resolutions.

The board has included statements in opposition to each resolution in the company's annual review.

It has also nominated two new members for its board, after Andrew Knight and John Thornton announced they would step down.

Former Colombian president Alvaro Uribe and former US secretary of labour Elaine Chao will stand for election at the annual meeting.

The meeting will be held in Los Angeles on October 16.

The West Australian

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