News Corp. CEO Rupert Murdoch is getting a 15 percent raise in 2014 targeted compensation following the carve-up of the media combine into two.
The 81-year-old Australia native now has a shot to earn $28.3M.
That sum is not in the sphere of the robber-baron booty hauled in by Wall Streeters and hedge fund titans, but it's no small change in the media business.
News Corp.'s board of directors "rationalized" Rupe's big payday by seeing the need to "further align his compensation with the interests of stockholders."
Geez, Rupe was holding back with his former $24.6M deal.
The sorry thinking of the compensation board is that Murdoch will now try harder because a bigger chunk of overall comp is discretionary based on financial performance of the two soon-to-be publicly traded companies.
Murdoch's family owns 38.4 percent of News Corp.'s outstanding shares. How much more aligned can his interests be?
Murdoch is the master builder of News Corp. His kids, James, Lachlan and Elisabeth, are potential successors. Rupe isn't going anywhere any time soon.
The compensation board could have demonstrated an independence streak by keeping Murdoch’s comp at the same level of 2013.
Even better, Murdoch could have announced that he would become a $1-a-year man. That would have been a stroke of pure PR genius.