Murdoch and Son Get Massive Bonuses, James Declines

The annual bonus, announced Friday, would have bumped James Murdoch’s compensation by seventy three %. His father got a 47 % increase, bringing his compensation to $33.3 million. The awards came on identical day that two longtime directors said they may quit the media company’s board.

James Murdoch was set to urge a payout of $17.9 million, boosted by a $6 million bonus and $8.3 million in stock awards. He can currently receive $11.9 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 planet on July 4.

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

“While the money and operating performance metrics on that the bonus decision was primarily based don’t seem to be associated with this matter, I feel that declining the bonus is that the right factor to do,” Murdoch said during a statement.

Compensation for Deputy Chairman Chase Carey, News Corp’s highest-paid government last year, rose 16 % to $30.2 million.

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

James Murdoch said he can confer with the board’s committee regarding whether a bonus may be applicable later.

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

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

TWO directors LEAVE, ONE to hitch

Perkins said on Friday that said he is not leaving the board thanks to the hacking scandal, and said he supports Rupert Murdoch and also the board.

Perkins, a director since 1996, said in an interview that he told Murdoch earlier within the year he did not wish to square for reelection this October.

“I said i don’t suppose the board should have two 80-year olds unless one in all them owns the company,” said Perkins, who turns 80 later this year. Murdoch turned 80 earlier this year.

Perkins said he offered to remain for a year if required, but then helped recruit fellow Silicon Valley venture capitalist Jim Breyer, 50, of Accel Partners, to square for election.

Perkins’ decision not to stand appeared controversial in light of the scandal at News Corp, especially when solid against another spying episode. In 2006, he quit the board of Hewlett Packard in protest once the company spied on directors and journalists to search out data leaks.

Another long-time News Corp director, Kenneth Cowley, 76, is quitting once 32 years.

The board shuffle comes once company governance consultants slammed the board for a lack of independence and weak influence in light of the scandal at the News of the planet. News Corp closed the paper in July, but the fallout reverberates.

British police arrested a 15th person on Friday in reference to the scandal.

A contemporary face on the board may facilitate {the company|the company} improve its corporate governance image.

Breyer, a partner at Accel Partners, is best referred to as one in all the early investors in Facebook, and conjointly sits on the boards of Wal-Mart Stores and Dell Inc. Breyer comes some months once News Corp rid itself of social networking website MySpace, whose collapse is widely believed to possess been prompted by the success of Facebook.

If Breyer is elected as a director, the board would shrink by one seat to fifteen directors. Perkins confirmed that the board remains seeking another director to spice up the ratio of independent to non-independent directors.

There are currently eight independent directors and seven News Corp insiders on the board.

Earlier this year, the board was expected to expand to 17 when Murdoch’s daughter Elisabeth was set to become the fourth Murdoch loved one to hitch the board. Following the furor over the hacking scandal, Elisabeth Murdoch and also the board set not to pursue the nomination.