News Corp. chief operating officer Chase Carey is taking a 50% salary
haircut in the coming fiscal year, part of an effort by the media giant
to tie executive compensation more closely to stock performance.
Corp stock is down about 5% so far this year. In the past five years
the stock has fallen about 16%, behind the S&P 500 Index. In a
Securities and Exchange Commission filing Tuesday, News Corp. said that
its new compensation framework is intended to increase the total portion
of an executive officer's salary that is performance based and to tie
that performance to its equity. The effort replaces the old bonus
structure, which was tied to the company's earnings per share.
As a result, News said in the filing that it would reduce Carey's annual
base compensation from $8.11 million to $4.05 million in fiscal 2011,
which ends in June of that year. But the News Corp executive is still in
line for a target award of $10 million (up to a maximum of $20 million)
in performance stock units that vest over three years and a separate
performance bonus worth $10 million.
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