Rupert Murdoch and his son James are in line for multi-million dollar bonuses if they are sacked by News Corporation, the company in which their family is the biggest shareholder.
Documents filed in New York show for the first time how much the pair are entitled to collect in bonuses should their employment be terminated.
Rupert Murdoch is chairman and chief executive while James is deputy chief operating officer, though the documents refer to his earlier title as chairman and chief executive of Europe and Asia.
Bonuses: If James and Rupert Murdoch are sacked, each will be entitled to take the proportion of their annual bonus they have earned up to that point
Rupert Murdoch was entitled to a maximum bonus of $25million (£15.4million) in 2011 while his potential payout under a long-term incentive plan was $4million for 2011-2013.
James Murdoch’s maximum cash bonus was $12million with a potential $6million long-term incentive plan payout.
If either man’s employment with the company is terminated, each will be entitled to take the proportion of their annual bonus they have earned up to that point.
They will not be allowed to have a payout under the long-term incentive scheme if they are a year or less into the scheme. But they will be entitled to one if they are in the second or third year of the scheme, even if they are sacked.
The payouts would be made in the case of dismissal on a variety of grounds including because they have pleaded guilty or been convicted of a felony, or because of ‘deliberate and material breach by you of your duties and responsibilities that results in material harm to the company’.
They would also get payouts if they are sacked because of addiction to drink or drugs. For full details go to fmwf.com.
Read more: http://www.thisismoney.co.uk/money/news/article-2136590/29m-bonus-package-Murdochs-sacked-News-Corporation.html#ixzz1tNKKMjAh