Rupert Murdoch, executive chairman of News Corp. will forgo a cash bonus for 2020. The bonus amount is a target that is set at $2 million a year but is contingent on the company’s achieving various performance metrics so it can vary. He received a $2.2 million bonus for the fiscal year ended in June, 2019.
CEO Robert Thomson will forgo 75% of his annual cash incentive bonus, which is set at a target of $5 million. He received $5.5 million last year. Based on $5 million, he’d be giving up $3.75 million.
With the impact of COVID-19, “There will obviously be an impact on executive compensation, and it is worth noting that bonuses are often the largest cash component for our senior executives. Pay reductions will be led by our Executive Chairman, Rupert Murdoch, who is voluntarily forgoing his entire cash bonus for the current fiscal year, and as Chief Executive I will forgo 75% of my annual cash bonus. The collective cuts in bonuses and other cost initiatives will have a positive impact on profitability and our cash position,” Thomson said in a statement announcing News Corp.’s fiscal third quarter results.
News Corp., parent of The Wall Street Journal, is following the growing trend of media and entertainment executives forgoing some compensation as the coronavirus batters their businesses. Often, lower level executives have been asked to take pay cuts as well,
The Murdoch patriarch also draws a salary as chairman of Fox Corp. He agreed last month to forgo his base salary at Fox from April 22 to September 30. As Deadline has reported, his base salary at Fox last year was $6.5 million.
According to the Forbes Real Time Billionaires site, “Rupert Murdoch & family” were worth $16.1 billion as of close of business yesterday.