{"id":38523,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/annual-bonus-guidelines-of-k-rupert-murdoch.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"annual-bonus-guidelines-of-k-rupert-murdoch","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/annual-bonus-guidelines-of-k-rupert-murdoch.html","title":{"rendered":"Annual Bonus Guidelines of K. Rupert Murdoch"},"content":{"rendered":"
News Corporation <\/font><\/p> 
 <\/font><\/p> 
July <\/u>28, 2005 <\/font><\/p> 
 <\/font><\/p> 
K. Rupert Murdoch <\/font><\/p> 
Chairman and Chief Executive Officer <\/font><\/p> 
News Corporation <\/font><\/p> 
1211 Avenue of the Americas <\/font><\/p> 
New York, NY 10036 <\/font><\/p> 
 <\/font><\/p>\n\n<\/pre>\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Re:<\/font><\/td>\n    <\/font><\/td>\nNotification of Annual Bonus Guidelines<\/font><\/td>\n<\/tr>\n<\/table>\n
 <\/font><\/p>\n
Dear Rupert: <\/font><\/p>\n
 <\/font><\/p>\n
The purpose of this letter is to advise you that, pursuant to Article V of
\nthe News Corporation 2005 Long-Term Incentive Plan, the Compensation Committee (the \u0093Committee<\/i><\/b>\u0094) of the Board of Directors of News Corporation (the \u0093Company<\/i><\/b>\u0094) determined on July 28, 2005, to apply the
\nAnnual Bonus Guidelines set forth as Exhibit A<\/u> to this letter (the \u0093Guidelines<\/i><\/b>\u0094) to calculate your annual bonus for the fiscal year ending June 30, 2006. The Guidelines shall remain in effect for the fiscal years
\nending June 30, 2007, 2008 and 2009, unless your employment terminates. The Committee has also determined that the Guidelines will be used to calculate your bonus for the fiscal year ending June 30, 2005. The award of your bonus will be made upon
\ncertification by the Committee that the performance goals upon which your bonus is based have been attained. <\/font><\/p>\n
 <\/font><\/p>\n
\n\n\n\n\n\n\n\n\n
<\/td>\n<\/tr>\n
Sincerely,<\/font><\/td>\n<\/tr>\n
<\/td>\n<\/tr>\n
\n
\/s\/ Andrew S. B. Knight<\/font><\/p>\n
<\/td>\n<\/tr>\n
Andrew S. B. Knight<\/font><\/td>\n<\/tr>\n
Chairman of the Compensation Committee<\/font><\/td>\n<\/tr>\n
News Corporation<\/font><\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n
\n
Exhibit A <\/b><\/font><\/p>\n
 <\/font><\/p>\n
Annual Bonus Guidelines of K. Rupert Murdoch <\/b><\/font><\/p>\n
 <\/font><\/p>\n
(i) K. Rupert Murdoch (the \u0093Executive<\/i><\/b>\u0094) shall be eligible for an annual bonus (\u0093Bonus<\/i><\/b>\u0094), as determined in
\naccordance with these Annual Bonus Guidelines (the \u0093Guidelines<\/i><\/b>\u0094) for each fiscal year (currently July 1 to June 30) (each a \u0093Fiscal Year<\/i><\/b>\u0094) of News Corporation (\u0093News Corp<\/i><\/b>\u0094)
\nending on or prior to June 30, 2009, provided that the Executive remains employed by News Corp during such period. Any Bonus earned by the Executive pursuant to the Guidelines shall be paid in the manner hereinafter provided no later than two and
\none-half months after the end of the period to which such Bonus relates or ten days after the earnings for the Fiscal Year are announced, whichever occurs first. Payment of the Bonus for each Fiscal Year shall in all circumstances be contingent upon
\ncertification by the Compensation Committee of the Board of Directors (the \u0093Compensation Committee<\/i><\/b>\u0094) of News Corp of the EPS Percentage Comparison (as defined below) for such Fiscal Year, and any deferral of a Bonus shall be
\nmade in a manner that complies with Section 409A of the Internal Revenue Code of 1986, as amended (the \u0093Code<\/i><\/b>\u0094). <\/font><\/p>\n
 <\/font><\/p>\n
(ii) The Bonus payable for each of the bonus periods ending on June 30, 2005, June 30, 2006, June 30, 2007, June 30, 2008 and June 30, 2009, respectively,
\nshall be the amount calculated pursuant to subsection (iii) below by (A) determining the EPS Percentage Comparison for the Fiscal Year then ended and (B) determining the Required Amount for such EPS Percentage Comparison. <\/font><\/p>\n
 <\/font><\/p>\n
(iii) \u0093EPS Percentage Comparison<\/i><\/b>\u0094 shall mean the
\namount of percentage change (calculated to 1\/100<\/font>th<\/sup><\/font> of a percent) in Earnings Per Share (as calculated below) of News
\nCorp, determined as follows: <\/font><\/p>\n
 <\/font><\/p>\n
(A) Net Income for each Fiscal
\nYear shall be determined in accordance with United States generally accepted accounting principles and will be such amount reported as Net Income in News Corp\u0092s audited consolidated financial statements (the \u0093Financial
\nStatements<\/i><\/b>\u0094); <\/font><\/p>\n
 <\/font><\/p>\n
(B) Adjusted Net Income (which is
\nto be used as the basis for the EPS Percentage Comparison computation) shall be determined by adjusting Net Income by eliminating the effect on Net Income of the following items, which will apply equally to income and losses from \u0093Associated
\nEntities\u0094 (as that term is used in the Financial Statements) included in Net Income (the \u0093Adjustments<\/i><\/b>\u0094) – (i) non-cash intangible asset impairment charges and writedowns on investments to realizable values; (ii) gains or
\nlosses on the sale or other disposition of businesses or investments; (iii) items classified as Extraordinary Items (or a similar classification); (iv) the impact of changes in accounting in the Fiscal Year of such change (with the intent being to
\nmeasure Adjusted Net Income in each Fiscal Year on the same bases of accounting); (v) costs of material business restructurings, reorganizations and relocations (includes severances, shut down, asset writeoffs \u0096 whether immediately recognized
\nor the incremental impact of accelerated charges over the restructuring period); and (vi) gains and losses from capital and debt issuances and retirements; <\/font><\/p>\n
 <\/font><\/p>\n
(C) Earnings Per Share shall be calculated by dividing Adjusted Net Income by the number of shares of stock (or stock equivalents) of the combined classes
\nof News Corp utilized in the Financial Statements for the respective Fiscal Year in determining diluted earnings per share (e.g., such number of shares for the 2004 Fiscal Year is set forth in Note 23 to the financial statements included in News
\nCorp\u0092s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 12, 2004), after adjusting for new share issuances and the effect of corporate reorganizations such as stock splits; and <\/font><\/p>\n
\n
\n
(D) In such determination, Earnings Per Share for the Fiscal Year then ended (\u0093Current
\nYear<\/i><\/b>\u0094) shall be divided by Earnings Per Share for the prior Fiscal Year (\u0093Prior Year<\/i><\/b>\u0094) to determine the EPS Percentage Comparison. If Prior Year Earnings Per Share is a negative number, the difference between
\nEarnings Per Share for the Current Year and Prior Year shall be divided by Prior Year Earnings Per Share (expressed as a positive number) to determine the EPS Percentage Comparison. For example: (A) if Prior Year Earnings Per Share is ($2.00) and
\nCurrent Year Earnings Per Share is ($2.50), the EPS Percentage Comparison shall be negative 25% (negative change of $.50 divided by absolute value of $2.00 = negative 25%); (B) if Prior Year Earnings Per Share is ($2.00) and Current Year Earnings
\nPer Share is $1.00, the EPS Percentage Comparison shall be 150% (positive change of $3.00 divided by absolute value of $2.00 = 150%); and (C) if Prior Year Earnings Per Share is $2.00 and Current Year Earnings Per Share is $1.80, the EPS Percentage
\nComparison is negative 10% (negative change of $.20 divided by absolute value of $2.00 = negative 10%). <\/font><\/p>\n
 <\/font><\/p>\n
(iv) The \u0093Required Amount<\/i><\/b>\u0094 shall equal the following amounts, using straight-line interpolation between low and high Required
\nAmounts for any EPS Percentage Comparison that falls within any applicable EPS Percentage Comparison range: <\/font><\/p>\n
 <\/font><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
EPS Percentage Comparison Ranges:<\/b><\/font><\/td>\n  <\/font><\/td>\nThe Required Amount is<\/b><\/font><\/td>\n<\/tr>\n
\n
If the EPS Percentage Comparison is<\/b><\/font><\/p>\n
<\/td>\n		  <\/font><\/td>\nLow<\/b><\/font><\/p>\n
<\/td>\n		  <\/font><\/td>\nHigh<\/b><\/font><\/p>\n
<\/td>\n<\/tr>\n
\n
Negative 25% or less<\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n <\/font><\/td>\n0<\/font><\/td>\n  <\/font><\/td>\n <\/font><\/td>\n0<\/font><\/td>\n<\/tr>\n
\n
Between negative 25% and negative 12 1<\/sup><\/font>\/<\/font>2<\/font>%<\/font><\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n <\/font><\/td>\n0<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n4 million<\/font><\/td>\n<\/tr>\n
\n
Between negative 12 1<\/sup><\/font>\/<\/font>2<\/font>% and 0<\/font><\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n$<\/font><\/td>\n4 million<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n5 million<\/font><\/td>\n<\/tr>\n
\n
Between 0 and 10%<\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n$<\/font><\/td>\n5 million<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n10 million<\/font><\/td>\n<\/tr>\n
\n
Between 10% and 20%<\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n$<\/font><\/td>\n10 million<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n15 million<\/font><\/td>\n<\/tr>\n
\n
Between 20% and 30%<\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n$<\/font><\/td>\n15 million<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n20 million<\/font><\/td>\n<\/tr>\n
\n
Between 30% and 40%<\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n$<\/font><\/td>\n20 million<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n25 million<\/font><\/td>\n<\/tr>\n
\n
More than 40%<\/font><\/p>\n<\/td>\n
  <\/font><\/td>\n$<\/font><\/td>\n25 million<\/font><\/td>\n  <\/font><\/td>\n$<\/font><\/td>\n25 million<\/font><\/td>\n<\/tr>\n<\/table>\n
 <\/font><\/p>\n
For example: (A) if the EPS Percentage
\nComparison is a negative 26%, no Bonus will be payable; (B) if the EPS Percentage Comparison is a negative 14%, the Bonus payable will be $3,520,000; (C) if the EPS Percentage Comparison is a negative 6.2455%, the Bonus payable will be $4,500,000
\n(i.e., negative 6.2455% rounded to the nearest 1\/100<\/font>th<\/sup><\/font> of a percent is negative 6.25%); (D) if the EPS Percentage
\nComparison is 1.5313%, the Bonus payable will be $5,765,000 (i.e., 1.5313% rounded to the nearest 1\/100<\/font>th<\/sup><\/font> of a
\npercent is 1.53%); (E) if the EPS Percentage Comparison is 14.9555%, the Bonus payable will be $12,480,000 (i.e., 14.9555% rounded to the nearest 1\/100<\/font>th<\/sup><\/font> of a percent is 14.96%); (F) if the EPS Percentage Comparison is 22.0036%, the Bonus payable will be $16,000,000 (i.e., 22.0036% rounded to the nearest 1\/100<\/font>th<\/sup><\/font> of a percent is 22.00%); and (G) if the EPS Percentage Comparison is 50.6587%, the Bonus payable will be $25,000,000. <\/font><\/p>\n
 <\/font><\/p>\n
(v) Any Bonuses payable to the Executive for the bonus periods ended June 30,
\n2005, and ending June 30, 2006, June 30, 2007, June 30, 2008 and June 30, 2009 shall be payable entirely in cash. <\/font><\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8350],"corporate_contracts_industries":[9467],"corporate_contracts_types":[9539,9546],"class_list":["post-38523","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-news-corp-ltd","corporate_contracts_industries-media__newspapers","corporate_contracts_types-compensation","corporate_contracts_types-compensation__incentive"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38523"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38523"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38523"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}