Saturday, September 3, 2011

#Hackgate : James #Murdoch turns down 3.7 million bonus

News International chairman James Murdoch has refused to accept a £3.7m bonus in the wake of the phone-hacking scandal.

James Murdoch, Chief Executive Officer of News International gives evidence to the Culture, Media and Sport Select Committee in the House of Commons in central London on the News of the World phone-hacking scandal 

James Murdoch gives evidence as part of the phone-hacking investigation

Mr Murdoch was due to receive the bonus as part of an £11.1m pay package for the year to June 30.

But he said he would not accept the bonus "in light of the current controversy surrounding News of the World", which closed in the wake of the scandal.
He added: "While the financial and operating performance metrics on which the bonus decision was based are not associated with this matter, I feel that declining the bonus is the right thing to do.

James and Rupert Murdoch 

James and his father Rupert Murdoch who will get a £7.7m bonus

"I will consult with the compensation committee in the future about whether any bonus may be appropriate at a later date."

Mr Murdoch is executive chairman of News International, News Corp's UK newspaper business, which owns The Sun and The Times.

He is also deputy chief operating officer of News Corp. Without the bonus, his package will rise 16% to £7.3m.

His father, News Corp chairman and chief executive Rupert Murdoch, saw his total pay packet rise 47% to £20.5m in the past year.

News Of The World sign outside News International building 

The News of the World tabloid was closed due to the hacking scandal

The figures were revealed in documents released before News Corp's annual meeting next month.

The executive chairman's pay was boosted by a £7.7m bonus for the year, which he has not offered to forego.

News Corp was caught up in a phone-hacking scandal during the financial year, which led to the closure of the Sunday tabloid.

However, it was not until July that the scandal escalated into a full blown crisis.

The report said Rupert Murdoch deserved his bonus because he had led the company through the economic downturn and positioned it for growth.