LOS ANGELES—Embattled News Corp. scion James Murdoch
said he was giving up his $6 million bonus for fiscal 2011 because of
the phone-hacking scandal that occurred at the company’s now-defunct
London tabloid, the News of the World.
“In light
of the current controversy surrounding News of the World, I have
declined the bonus that the company chose to award to me,” Murdoch, the
son of News Corp. CEO Rupert Murdoch, said in a statement Friday. “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
Murdoch, who is in charge of News Corp.’s European operations, said he
would “consult with the compensation committee in the future about
whether any bonus may be appropriate at a later date.”
The
$6 million bonus was part of a $17.9 million total compensation package
that Murdoch received for the company’s fiscal year that ended June 30.
Without the bonus, Murdoch garnered nearly $12 million in compensation,
including a $3 million base salary and $8.3 million in stock awards.
Murdoch,
38, was elevated to the company’s deputy chief operating officer in
late March, while the News of the World scandal was making headlines in
Britain but before it exploded into front-page news around the world.
Murdoch, who approved settlements to victims of the phone hacking, is
expected to be called back before a committee of the British Parliament
this fall to answer more questions about when he became aware of the
widespread illegal activity at the News of the World.
The
ethics scandal not only led to the demise of News of the World, but has
also rippled throughout the entire media giant. Key senior executives
have resigned, and probes into how News Corp. operates are underway on
both sides of the Atlantic Ocean. The debacle also led to News Corp.
having to ditch plans to buy outright the powerful British satellite
broadcaster British Sky Broadcasting.
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©2011 the Los Angeles Times
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