James Murdoch Turns Down $6M Bonus

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News Corp. scion and deputy chairman James Murdoch turned down a $6 million bonus he was awarded in fiscal 2011, in light of the ongoing phone hacking scandal at its former British tabloid News of the World.
News of the World was shuttered by News Corp. in July after new revelations surrounding its phone-hacking scandal came to light, including that its reporters had hacked into the voicemail of a child murder victim. James Murdoch and his father, News Corp. CEO Rupert Murdoch, have denied prior knowledge of the phone hacking practice.
Both men were called before British Parliament in July to answer questions surrounding the scandal. They have since been asked to further explain some of their answers, which have been called into question by testimony from other employees and new documents.
"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," Murdoch said in a statement. "I will consult with the Compensation Committee in the future about whether any bonus may be appropriate at a later date.
Including the bonus, James Murdoch's fiscal 2011compensation would have been $17.9 million, a 74% increase from the $10.3 million he earned in fiscal 2010. Without the bonus, Murdoch's compensation dips to $11.9 million for fiscal 2011, a 15.5% increase over fiscal 2010.

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