Is this the beginning of the end of Rupert Murdoch's media empire?

James Murdoch Turns Down $6 Million Bonus, Citing PhoneGate

September 2, 2011 at 11:49 am PT


News Corp. executive James Murdoch says he’ll decline a $6 million bonus the company gave him for his performance in its last fiscal year, citing the ongoing PhoneGate scandal.

Murdoch, who is Deputy Chief Operating Officer and until recently has been seen as the heir apparent to his father Rupert Murdoch. He has also been one of the primary focus points during the scandal, because he has been in charge of News Corp.’s British newspaper unit that has been accused of widespread, systemic phonetapping and other charges. (News Corp. also owns this Web site)

Here’s his statement:

In light of the current controversy surrounding News of the World, I have declined the bonus that the company chose to award to me. 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. I will consult with the Compensation Committee in the future about whether any bonus may be appropriate at a later date.

Murdoch is keeping the rest of his compensation, which includes a base salary of $3 million, $8.3 million in stock awards and other benefits including personal use of the company’s aircraft, which the filing values at $224,864 for the fiscal year.

In News Corp.’s annual proxy statement, filed with the Securities and Exchange Commission today, the company said it considered the following factors in awarding him his $6 million bonus:

“Mr. J.R. Murdoch played an important role during fiscal 2011 in developing the Company’s key businesses and investments in Europe, Asia and the Middle East, including the development of the Company’s content and distribution strategy. He led the success of STAR India, which delivers market-leading content, and he led the Company’s ongoing deployment of satellite television in Italy (with Sky Italia achieving its highest ever subscriber base), the UK, Germany and India, where we operate, or are key investors in, industry-leading pay television platforms. Under his leadership, the Company expanded its presence in the Middle East through a key strategic partnership and optimized its European asset portfolio through the disposition of News Outdoor. Mr. J.R. Murdoch also successfully transitioned into his new role as Deputy Chief Operating Officer and Chairman and CEO, International, expanding his responsibilities.”

Meanwhile, although Elisabeth(Murdoch) has emphatically denied saying, in a private conversation at a New York book launch in July, that Brooks and her brother(James) had "fucked the company", it was a sentiment that various allies say she nevertheless shared.

As Bismarck is said to have remarked about the process of passing legislation, many still think the business of making news is a bit like the business of making sausages: best kept out of sight from the end consumer. But in a world where many readers have been left deeply cynical about journalism after this summer's phone-hacking revelations, it seems there are more people wanting to know where their news comes from and how it is made. Painful as it might be for journalists to acknowledge, they might even have some improvements to make on the recipe too.

Eeerrrrrmmmm, did anything happen with this case?

The wheels of justice trundle very slowly indeed.

BTW Actor Hugh Grant has been at all the political party conferences trying to keep this in the headlines.

Wall Street Journal circulation scam claims senior Murdoch executive

Andrew Langhoff resigns as European publishing chief after exposure of secret channels of cash to help boost sales figures The Wall Street Journal used a controversial scheme to boost its European circulation by allowing sponsors to buy copies in bulk from as little as 1¢. One of Rupert Murdoch's most senior European executives has resigned following Guardian inquiries about a circulation scam at News Corporation's flagship newspaper, the Wall Street Journal.

The Guardian found evidence that the Journal had been channelling money through European companies in order to secretly buy thousands of copies of its own paper at a knock-down rate, misleading readers and advertisers about the Journal's true circulation.

The bizarre scheme included a formal, written contract in which the Journal persuaded one company to co-operate by agreeing to publish articles that promoted its activities, a move which led some staff to accuse the paper's management of violating journalistic ethics and jeopardising its treasured reputation for editorial quality.