Rupert Murdoch's pay packet down after accounting changes

by Staff, Brand Republic 20-Aug-08, 11:45

LONDON - Rupert Murdoch, chairman and chief executive of News Corporation, has effectively taken a 14% pay cut over the past year because of a change in accounting practices.

According to a filing made by News Corp with the US financial regulator, Murdoch's salary, bonus and stock compensation was up by 9% to $27.1m for the financial year, but changes to accounting practices meant that his retirement contributions were reduced.

Murdoch's salary remained at $8.1m, but his bonus was up to $17.5m for the year, compared with $15.8m last year.

This figure is tied to News Corp's earnings, which could be bad news for Murdoch's bank balance next year, as he warned earlier this month that there were tough times ahead.

Earlier this year News Corp, owner of Sky, News International, Fox and Dow Jones, reported a rise in operating profit of 21% to $5.4bn.

It attributed this increase to rising internet revenues and lower costs for TV programmes because of the recent screenwriters' strike.