James Murdoch picks up another £4m after Sky hits commercial targets

[BGonaSTICK]

BSkyB chief executive James Murdoch has pocketed a cash bonus worth almost £4m after the satellite broadcaster hit a series of operational targets, including boosting customer numbers.

The payout, under Sky's long term incentive plan, comes on top of the near-£3m remuneration package Mr Murdoch received for the year to the end of June, as revealed in a Sky filing to the Securities and Exchange Commission last month.

Mr Murdoch, however, missed out on a further windfall of up to £1.6m as Sky's share price performance failed to keep up with its success in winning new customers and raising profits.

The bonus is a result of the vesting of shares Mr Murdoch was allotted under incentive plans in August 2004 and November 2005. The vesting of up to 70% of the shares was conditional on Sky growing its earnings per share, customer numbers and free cash flow.

On August 11, 582,750 shares became exercisable and Sky agreed to pay the amount in cash at 671.5p a share, Sky's closing mid-market price on Monday.

Last month Sky revealed that Mr Murdoch's salary for the past year rose 15%. His total remuneration package, including pension, increased to £2,993,124 - up from £2,749,285m in 2006. On top of his base salary of £950,000, he was awarded a maximum allowable bonus of £1.9m as well as £67,474 in benefits and a pension payment of £75,650.

He also received 550,000 shares he will be able to claim if he meets further targets.

Sky's chief financial officer, Jeremy Darroch, received a 5% pay rise, taking his total remuneration package to £1,423,752, up from £1,324,958 in 2006.

Source: Guardian