Fox Details Terms of James, Lachlan Murdoch’s Four-Year Contracts
Chase Carey has a deal to remain as a non-exclusive consultant for two one-year terms starting July 2016, a regulatory filing also shows.
21st Century Fox on Friday detailed the terms of the employment contracts of James and Lachlan Murdoch in their new elevated roles as CEO and executive co-chairman, respectively, and that of Chase Carey who has an option to stay at the company as a consultant on a non-exclusive basis through mid-2018.
The two sons of Fox executive co-chairman Rupert Murdoch will each serve a four-year term through June 30, 2019 under their new employment contracts, according to a regulatory filing. Each will report to the board, and James Murdoch will also report to his father.
Both will receive a base salary of $3 million and will be eligible to receive an annual bonus with a target of no less than $8 million and a maximum payout of no less than $16 million, according to the filing.
Each executive will participate in the company’s long-term incentive performance stock unit program and be eligible to receive for each fiscal year a performance share unit (PSU) bonus with a target of no less than $9 million.
Overall, that means the Murdoch sons have target compensation packages worth $20 million-plus, with 85 percent of that performance-based. In the most recent fiscal year, Rupert Murdoch’s pay amounted to $29.2 million, Carey's to $28 million and James Murdoch's to $18.7 million.
Both will receive a car allowance and can use a corporate jet for business and personal travel in accordance with company guidelines, the filing shows. Lachlan Murdoch will also be reimbursed for expenses "actually incurred" for the relocation of his family from Australia to Los Angeles.
Meanwhile, Carey on July 1 became executive vice chairman of Fox and a consultant to Rupert Murdoch and was expected to leave on July 1, 2016. "The independent directors have approved a new consulting arrangement," the filing said though.
Under it, beginning July 1, 2016, Carey will provide non-exclusive consulting services to the company "as mutually agreed ... for a period of two one-year terms." The consulting work "shall not be on a full time basis," the filing said.
During the consulting term, Carey will continue to serve on the board as vice chairman "at the company’s request" and will report to Rupert Murdoch. For his consulting services, Carey will receive a cash fee of $20 million for each year, according to the filing.
He can give notice to the company that he won't provide the consulting services before the non-exclusive consulting term starts or before its second year starts.
Friday's filing also showed that Fox CFO John Nallen’s employment contract has been extended to mid-2018. He reports to the two Murdoch sons.